To Correct a Balance of Payments Surplus and Unemployment a Nation

question 16

Multiple Choice

To correct a balance of payments surplus and unemployment a nation requires a:

• A)devaluation and expansionary fiscal and monetary policies
• B)devaluation and contractionary fiscal and monetary policies
• C)devaluation or revaluation and expansionary fiscal and monetary policies
• D)revaluation and either expansionary or contractionary fiscal and monetary policies

---

Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, essential for understanding profitability and production efficiency.

R&D Expenditures

Funds allocated towards research and development activities by businesses, government, or organizations.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the financial market.

Basic Scientific Research

The initial stage of scientific inquiry aimed at gaining more comprehensive knowledge or understanding of the subject without specific applications towards processes or products in mind.