If President Obama Wanted to Decrease Aggregate Demand, Which of the Following

question 97

Multiple Choice

If President Obama wanted to decrease aggregate demand, which of the following would he tend to favor?

• A)An increase in government spending, because it will increase the size of the public sector.
• B)A decrease in government spending, because it keeps the public sector small.
• C)An increase in transfer payments, because it has a larger multiplier than tax changes.
• D)An increase in taxes, because it would not make the public sector smaller.

Understand the balance of trade and how international transactions are accounted for.

Recognize hedging strategies for managing currency risk in international transactions.

Describe the role of government intervention in foreign exchange markets under floating exchange rate systems.

Understand the concept and implication of Eurodollars and Eurobonds in international finance.

---

Definitions:

Destructive Leader

A leadership style characterized by manipulation, control, and the undermining of individuals’ rights, often leading to negative outcomes for the organization or group.

Suspicious Motives

The assumption or belief that underlying intentions or motivations of an individual or group are questionable, dishonest, or harmful.

Extraversion

A personality trait characterized by outgoingness, sociability, and a tendency to seek stimulation and the company of others.

Narcissism

A personality trait characterized by an excessive interest in or admiration of oneself and one's physical appearance.