Which of the Following Are True in Terms of the Current

question 110

Multiple Choice

Which of the following are true in terms of the current account balance?

• A) Monetary expansion has no effect on the current account balance.
• B) Monetary expansion decreases the current account balance.
• C) Fiscal expansion increases the current account balance.
• D) Fiscal expansion has no effect on the current account balance.
• E) Monetary expansion increases the current account balance.

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Definitions:

Exemplar Theory

A psychological theory suggesting that people make judgments about objects or concepts based on comparisons with instances of those categories that they have encountered in the past.

Prototype Theory

is a model of categorization in cognitive science, where members of a category are assessed by their resemblance to a typical member or prototype of that category.

Schema Theory

A theory of attention that claims unattended information is never perceived.

Knowledge-based Theory

A theory suggesting that organizations rely on their knowledge and expertise to create competitive advantage and innovate.