Which Action Is an Effect of a Contractionary Policy Under

question 219

Multiple Choice

Which action is an effect of a contractionary policy under a fixed exchange rate system?

• A) Net transfers rise.
• B) The capital account becomes positive.
• C) The trade balance worsens.
• D) Imports drop and exports rise.

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Definitions:

Increasing Uncertainty

The situation in which the amount of unpredictability in the environment or the future outcomes of decisions is rising.

Managerial Experience

The accumulation of knowledge, skills, and expertise that an individual has acquired through holding managerial positions over time.

Managerial Experience

The accumulation of knowledge, skills, and insights gained through holding positions of responsibility for directing and controlling organizational units or projects.

Perceived Environment

Refers to how individuals interpret and understand the environments in which they find themselves, through subjective perception.