Suppose Foreigners Find U

question 40

Multiple Choice

Suppose foreigners find U.S.goods and services more desirable for some reason other than a change in the exchange rate.Which policies could be used to offset the resulting change in output?

• A)an increase in the money supply and an increase in government purchases.
• B)an increase in the money supply and a decrease in government purchases.
• C)a decrease in the money supply and an increase in government purchases.
• D)a decrease in the money supply and a decrease in government purchases.

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Definitions:

Acetylcholine

A neurotransmitter in the nervous system that plays an important role in muscle contraction, arousal, sleep, and memory.

Night Terrors

Intense episodes of fear that occur during sleep, typically in children, characterized by screaming, sweating, and confusion but little or no recall of the event upon awakening.

Nightmares

Disturbing dreams that can cause feelings of fear, terror, or anxiety, often awakening the sleeper.

Nicotine

The active ingredient in tobacco.