Which One of the Following Best Describes the Net Export

question 212

Multiple Choice

Which one of the following best describes the net export effect associated with an expansionary Canadian fiscal policy?

• A)domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports increase.
• B)domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports fall.
• C)domestic interest rate rises, foreign demand for dollars falls, dollar depreciates, and net exports increase.
• D)domestic interest rate rises, foreign demand for dollars increases, dollar appreciates, and net exports decline.

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Definitions:

Polygraph Test

A test that seeks to determine whether the test taker is telling the truth by measuring physiological responses such as respiration level, perspiration level, and heart rate. Also known as a lie detector test.

Physiological Variables

Biological factors that can vary among individuals or within an individual over time, influencing physical health.

Heart Rate

The number of heartbeats per unit of time, typically expressed in beats per minute (bpm).

Magnetic Resonance Imaging

A medical imaging technique used in radiology to form pictures of the anatomy and the physiological processes of the body.