If US Net Exports Decrease, Then Those in Favor of 'Lean

question 119

Multiple Choice

If U.S. net exports decrease, then those in favor of 'lean against the wind policies' would advocate

• A)increasing the money supply and cutting taxes.
• B)decreasing the money supply and cutting taxes.
• C)decreasing the money supply and raising taxes.
• D)increasing the money supply and raising taxes.

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Definitions:

Market Risk Premium

The extra return investors demand for taking the risk of investing in stocks over a risk-free asset.

Common Stock

A form of shares in a corporation that grants the owner voting privileges and entitlement to a portion of the corporation's earnings via dividends.

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, accounting for interest payments and capital gain or loss.

Zero Coupon Bonds

Bonds that do not pay interest during their lifetime but are issued at a discount and redeemed at face value at maturity.