In a fixed exchange rate regime, which of the following policies could be implemented to reduce a trade deficit and leave aggregate demand constant?
A) devalue the currency
B) increase government spending
C) decrease government spending
D) decrease government spending and devalue the currency
E) increase government spending and revalue the currency
D
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Which of the following is a result of a market economy?
A) voluntary exchange B) an equal income distribution C) agreement on equity D) environmental protection
Some individuals seek to use government action to make themselves better off at the expense of others. The actions of these individuals
A) are evidence of the voting paradox. B) are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance. C) offer proof that Adam Smith's "invisible hand" is not valid. D) are examples of rent seeking.
If minimum wages in a monopsony labor market are set above the firm's MFC at its initial hiring level, the effect would be to
A. reduce factor costs. B. increase productivity. C. reduce employment. D. increase the hiring of unskilled workers.
GDP per person
What will be an ideal response?