Under a Fixed Exchange-Rate System and High Capital Mobility,an Expansion

question 23

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,an expansion in the domestic money supply leads to:

• A) Trade-account deficit and a capital-account surplus
• B) Trade-account deficit and a capital-account deficit
• C) Trade-account surplus and a capital-account surplus
• D) Trade-account surplus and a capital-account deficit

---

Definitions:

Control Fate

The concept of having influence or control over the outcomes of one's actions or the direction of events in one's life or environment.

Own Fate

involves the belief or sense that an individual has control over their destiny and the outcomes of their actions.

Type B Orientation

Type B Orientation describes individuals characterized by less competitive, more relaxed, and less stress-driven behavior patterns in comparison to Type A individuals.

Impatience

A disposition toward being quickly irritated or provoked by delays or obstacles.