If a Country Has a Balance of Payments Deficit and Wishes

question 146

Multiple Choice

If a country has a balance of payments deficit and wishes to maintain the fixed value of its currency, it will generally

• A)sell its own currency for foreign currencies.
• B)buy its own currency with foreign reserves.
• C)decrease taxes to increase domestic disposable income.
• D)increase the money supply to keep interest rates down.

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Definitions:

Constructivist

Pertains to a learning or therapeutic approach based on the idea that humans construct their own understanding and knowledge of the world, through experiencing things and reflecting on those experiences.

Ecological

The term ecological pertains to the relationships between living organisms, including humans, and their physical environment, emphasizing the interconnectedness and impact of these relationships.

Person-centered

An approach in psychology and counseling that emphasizes the importance of understanding individuals from their own perspective and valuing their autonomy and self-determination.

Moral Development Theory

A framework that discusses how people evolve in their understanding and reasoning about what is right and wrong.