Following the Use of Expansionary Fiscal Policy in the United

question 86

Multiple Choice

Following the use of expansionary fiscal policy in the United States,which of the following events will NOT take place?

• A)increase in U.S.interest rate
• B)appreciation of the dollar
• C)increase in U.S.net exports
• D)increase in exports of foreign countries to the United States

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Definitions:

Significant Leverage

Refers to the extensive use of borrowed funds to finance the assets of a company, significantly increasing the potential return or loss of an investment.

Hedge Funds

Private investment funds that use a range of strategies, including derivatives, leverage, and short selling, to earn returns for their investors.

Equity Mutual Funds

Mutual funds that primarily invest in stocks with the aim of providing capital growth or income to its investors.

Incentive Bonus

An additional payment or reward given to employees as a motivation for meeting or exceeding specified goals or objectives.