According to the _____, an expansionary fiscal policy that boosts interest rates will cause the domestic currency to become more costly on the foreign exchange market and net exports to decline, thus partially offsetting the expansionary fiscal policy

a. real-balances effect
b. foreign-trade effect
c. crowding-out effect
d. industrial-policy effect


b. foreign-trade effect

Political Science

You might also like to view...

This question aligns with Chapter 3, "Learning Proper Citation Forms, Finding the Scholarly Debate, and Summarizing and Classifying Arguments: The Annotated Bibliography," of Writing a Research Paper in Political Science.Read this example annotated bibliography and then answer the question.The example annotated bibliography shows ______.

A. how easy moving from sources to schools of thought is B. that as long as each school has one source in it, you will be fine C. that thinking about answers to the research question in the long and short form is important for grouping your sources and being clear D. that longer answers to research questions are usually better because these answers are more complex and, therefore, more scholarly E. all of these

Political Science

According to Cronin, to what are outcome goals of a terrorist group typically related?

a. perpetuating the group itself b. the ideological composition of the terrorist group c. gaining relative advantage from a position of weakness d. the size of the terrorist group and its access to resources e. the nature of the state or the governance of its population

Political Science

According to political scientists, which of the following has historically been the most successful mobilizer of Americans to vote?

a. family and friends b. television advertisements c. political parties d. voter registration drives

Political Science

Which election method allows citizens to place proposals on the ballot for voter approval? If the measure passes, it becomes law

A) referendum B) initiative C) popular recall D) electoral vote

Political Science