Suppose the Rest of the World Experiences an Expansion That

question 47

Multiple Choice

Suppose the rest of the world experiences an expansion that causes an increase in foreign income (Y*) .From the domestic economy's perspective,this increase in foreign income will cause which of the following as the domestic economy adjusts to the rise in Y*?

• A)an increase in domestic income
• B)an increase in imports
• C)an increase in net exports
• D)all of the above
• E) both A and C

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Definitions:

Initiative Vs. Guilt

A stage of psychosocial development in Erik Erikson's theory where children learn to initiate activities and interact with others or feel guilty for being unsuccessful at these tasks.

Object Permanence

is the cognitive understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a fundamental concept in developmental psychology.

Sensory-Motor Stage

The earliest stage in Piaget's theory of cognitive development, where infants learn about the world primarily through their senses and motor activities.

Egocentrism

A cognitive trait that describes the inability to differentiate between one's own perspective and another person's perspective, often seen in early childhood development.