Considering Only Its Direct Effect on Income, Expansionary Fiscal Policy

Multiple Choice

Considering only its direct effect on income, expansionary fiscal policy tends to:

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