Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance.
B) Monetary expansion keeps the current account balance the same.
C) Fiscal expansion increases the current account balance.
D) Fiscal expansion keeps the current account balance the same.
E) Monetary expansion increases the current account balance.
E
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For the U.S. federal government, discretionary expenditures refer to
A) spending on entitlement programs. B) spending on imports and exports. C) spending on interest on federal debt. D) spending that must be authorized by Congress each year.
Refer to the figure above. Given the consumer's budget constraint, the consumption bundle that maximizes his satisfaction consists of:
A) 0 shirts and 40 pairs of trousers. B) 10 shirts and 30 pairs of trousers. C) 20 shirts and 15 pairs of trousers. D) 35 shirts and 10 pairs of trousers.