Considering Only Its Direct Effect on Income, Contractionary Monetary Policy

Multiple Choice

Considering only its direct effect on income, contractionary monetary policy tends to:

A) increase income and imports, shifting the U.S. trade balance in the direction of deficit.
B) increase income and imports, shifting the U.S. trade balance in the direction of surplus.
C) decrease income and imports, shifting the U.S. trade balance in the direction of deficit.
D) decrease income and imports, shifting the U.S. trade balance in the direction of surplus.