What Are the Results of a Contractionary Monetary Policy in an Open

question 26

Multiple Choice

What are the results of a contractionary monetary policy in an open economy with floating exchange rates and internationally mobile capital?

• A)The dollar appreciates, which leads to an increase in exports and a decrease in imports.The country therefore winds up with a deficit in capital and a surplus in its balance of trade.
• B)The dollar appreciates, which attracts foreign capital.Also, imports rise and exports decline.The country therefore winds up with a surplus in capital and an increase in its trade deficit.
• C)The dollar depreciates, which attracts foreign capital.Also, exports rise and imports decline.The country therefore winds up with a deficit in capital and a surplus in its balance of trade.
• D)The dollar depreciates, which leads to a larger real GDP and a larger trade surplus.

Compare the cohesion levels of open and closed groups.

Understand the impacts of individual investments on group loyalty and cohesion.

Understand the multilevel concept of cohesion and identify components not included in its current conception.

Comprehend and sequence the stages of Tuckman's group development model.

---

Definitions:

Unearned Subscriptions

A liability account that represents payments received by a company for subscriptions that have not yet been earned because the service has not been provided.

Deferral

An accounting principle that postpones the recognition of an expense or revenue to a future accounting period.

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.