How Might a U

question 102

Multiple Choice

How might a U.S.federal budget surplus affect the balance of trade? (Assume exchange rates are stated in terms of foreign currency per U.S.dollar.)

• A)A federal budget surplus raises interest rates,which raises exchange rates,and increases the balance of trade.
• B)A federal budget surplus raises interest rates,which raises exchange rates,and reduces the balance of trade.
• C)A federal budget surplus reduces interest rates,which raises exchange rates,and reduces the balance of trade.
• D)A federal budget surplus reduces interest rates,which reduces exchange rates and increases the balance of trade.

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Definitions:

Instincts

Innate, typically fixed patterns of behavior in animals and humans in response to certain stimuli.

Problems With Formal Organizations

Issues or challenges that arise within structured groups or entities, often related to bureaucracy, inefficiency, or conflict among members.

Dissatisfaction

Dissatisfaction is the feeling of displeasure or unhappiness resulting from unmet expectations or desires.

Psychological

Relates to the mental processes and emotional state of an individual or group.