Policymakers in a Country with a Balance of Payments Surplus

question 67

Multiple Choice

Policymakers in a country with a balance of payments surplus may not want to see their country's currency appreciate because this would

• A)hurt consumers in their country by making foreign goods more expensive.
• B)hurt domestic businesses by making foreign goods cheaper in their country.
• C)increase inflation in their country.
• D)decrease the wealth of the country.

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Definitions:

Crowds

Large groups of people gathered together in a particular location, often sharing a common purpose or spontaneously forming.

Norms of Society

The unwritten rules and expectations that regulate the behavior of individuals within a group or society, contributing to social order and cohesion.

Collective Action

The action taken together by a group of people with the aim of achieving a common objective.

Lynch Mobs

Groups of people who take the law into their own hands to punish an alleged criminal, typically without a legal trial.