To Correct a Balance of Payments Surplus and Inflation a Nation

question 13

Multiple Choice

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

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

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Definitions:

Forward Buying

A procurement strategy where a company purchases goods in advance to take advantage of favorable pricing or to hedge against future price increases and supply shortages.

Peak Period

Peak period denotes the time of highest demand in a cycle, where operations face maximum stress due to increased consumer activity.

Demand Pattern

The trend or repetitive sequence observed in consumer demand over a certain period, which can be predictable or may vary seasonally, cyclically, or irregularly.

Product Margin

A financial metric that calculates the difference between the sales revenue generated by a product and the costs associated with its production.