What Are the Effects on U

question 202

Multiple Choice

What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners?

• A) U.S. imports will increase more than U.S. exports.
• B) U.S. exports will increase more than U.S. imports.
• C) U.S. imports will decrease, but U.S. exports will increase.
• D) There will be no effect on U.S. imports and exports.

---

Definitions:

Rational Expectations Theory

The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period.

Government Intervention

The direct or indirect involvement of governmental actions in the market to influence the economy, correct market failures, or protect the public interest.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, emphasizing the importance of government intervention during economic downturns.