Suppose That the Fed Decides to Increase the Growth Rate

question 7

Multiple Choice

Suppose that the Fed decides to increase the growth rate of the money supply in the United States.What is most likely to happen to the U.S.trade deficit and to GDP?

• A)The trade deficit will fall; GDP will fall.
• B)The trade deficit will rise; GDP will rise.
• C)The trade deficit will fall; GDP will rise.
• D)The trade deficit will rise; GDP will fall.

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Definitions:

Operant Conditioning

A conditioning method in which the vigor of a response is influenced through the use of encouragements or sanctions.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted and intrusive thoughts (obsessions) leading to repetitive behaviors (compulsions) as an attempt to reduce anxiety.

Anxiety Reduction

A process or intervention aimed at decreasing levels of stress or anxiety, often involving techniques such as relaxation exercises, mindfulness, or therapy.

Major Depressive Disorder

A psychological condition marked by a continuously low mood or lack of enjoyment in tasks, which significantly disrupts everyday life.