Which of the Following Policy Measures CANNOT Be Used to Reduce

question 34

Multiple Choice

Which of the following policy measures CANNOT be used to reduce a current account deficit?

• A)a tariff on imported goods
• B)a devaluation of the currency
• C)restrictive monetary policy
• D)expansionary fiscal policy
• E)a combination of A)and C)

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Definitions:

Flavour

The distinctive taste and aroma of food or drink, stemming from its ingredients and preparation methods.

Representativeness Heuristic

A cognitive shortcut used in decision-making that relies on comparing the similarity of current situations to stereotypes or prototypes.

Cognitive Tendency

Refers to habitual patterns or biases in thinking that can influence judgment and decision-making.

Typical Prototype

An ideal or standard example of a particular category that embodies the most common and salient features of that category.