Which of the Following Does Not Occur If Home Starts

question 96

Multiple Choice

Which of the following does not occur if Home starts a policy of permanent fiscal expansion:

• A) Home's exchange rate increases.
• B) Foreign's interest rate rises.
• C) Home output rises.
• D) Foreign output rises.
• E) Current Account Balance increases.

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Definitions:

Host-Country National

An individual who is a citizen of the country in which an international company operates, as opposed to an expatriate who originates from the company's home country.

Parent-Country National

An employee who is a citizen of the country in which the employing organization's headquarters is located, working in a branch or subsidiary in another country.

Third-Country National

An individual who is working in a country that is neither their home country nor the country of the company's headquarters to which they are assigned.

International Organization

An organization that sets up one or a few facilities in one or a few foreign countries.