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:

Psychologists

Professionals who study mental processes, behavior, and the mind, often working in academic, research, or clinical settings.

Projective

Relating to tests or techniques designed to reveal hidden emotions and internal conflicts by interpreting people’s responses to ambiguous stimuli.

Dynamic

Characterized by constant change, activity, or progress.

Inkblots

Images created by dropping ink on paper and then folding the paper to create symmetrical patterns, used in psychological tests to assess personality.