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:

Random Selection

A method of sampling in which participants are chosen from a larger population entirely by chance, ensuring that every individual has an equal probability of being selected.

Random Assignment

Assignment of participants in an experiment to groups in such a way that each person has an equal chance of being placed in any group.

Convenience Sampling

A sampling method where participants are selected based on their availability and willingness to take part, rather than using random selection.

Dependent Variable

In an experiment, the condition that may or may not change as a result of changes in the independent variable.