Contractionary Policies Help Correct a Balance of Payments Deficit by

question 105

Multiple Choice

Contractionary policies help correct a balance of payments deficit by

• A)lowering domestic incomes but raising demand for imports
• B)raising domestic incomes but lowering demand for imports
• C)raising both domestic incomes and demand for imports
• D)lowering both domestic incomes and demand for imports
• E)lowering interest rates and increasing aggregate spending

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Definitions:

Fault Lines

Hypothetical divisions within a group or team, based on demographic, cultural, or organizational differences, that can lead to conflict.

Bad Apples Effect

Refers to the impact that individuals who exhibit undesirable behaviors can have on their peers or the overall environment, often resulting in a negative group dynamic or culture.

Diversity

The existence of variations of different characteristics in a group of people, including race, ethnicity, gender, sexual orientation, age, and socioeconomic status.

Illusion of Invulnerability

A cognitive bias that leads individuals or groups to underestimate the likelihood of experiencing negative events.