Considering Only Its Direct Effect on Income, Expansionary Fiscal Policy

question 80

Multiple Choice

Considering only its direct effect on income, expansionary fiscal policy tends to:

• A)increase income and imports, shifting the U.S. trade balance in the direction of a deficit.
• B)increase income and imports, shifting the U.S. trade balance in the direction of a surplus.
• C)decrease income and imports, shifting the U.S. trade balance in the direction of a deficit.
• D)decrease income and imports, shifting the U.S. trade balance in the direction of a surplus.

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Definitions:

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society feels uncomfortable with uncertainty and ambiguity.

Hofstede's Dimensions

A framework for cross-cultural communication, developed by Geert Hofstede, that describes the effects of a society's culture on the values of its members and how these values relate to behavior.

Unpredictability

The quality of being unable to be predicted or foreseen, often resulting in uncertainty or variability in outcomes.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity, risk, and uncertainty in their daily lives.