Under a Fixed Exchange-Rate System and High Capital Mobility,a Contractionary

question 26

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,a contractionary fiscal policy leads to a:

• A) Trade-account deficit and a capital-account surplus
• B) Trade-account deficit and a capital-account deficit
• C) Trade-account surplus and a capital-account surplus
• D) Trade-account surplus and a capital-account deficit

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Definitions:

Mean

The average score on a scale, calculated by adding everyone’s scores and dividing by the number of scores.

Descriptive Statistics

Numbers such as the mean, median, and mode.

Discriminant Validity

When a scale does not correlate with unrelated scales.

Empathy

The ability to understand and share the feelings of another.