Considering Its Direct Effect on Income, Which of the Following

question 129

Multiple Choice

Considering its direct effect on income, which of the following policies is most likely to reduce a country's trade deficit?

• A)An increase in the money supply
• B)A cut in taxes
• C)An increase in government spending
• D)An increase in taxes

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Definitions:

Statutes

Written laws passed by a legislative body at both the federal and state levels.

Executive Orders

Directives issued by the President of the United States or a state governor, having the force of law, aimed at managing governmental operations and officials.

World Trade Organization

An international organization that regulates international trade with the aim of ensuring that trade flows as smoothly, predictably, and freely as possible.

Negotiations

The process of discussing things to reach a mutual agreement, especially in business or diplomatic conversations.