Which of the Following Statements Is (Are)correct

question 42

Multiple Choice

Which of the following statements is (are) correct?

• A)Given a fixed exchange rate system,there is an absence of conflicts between internal and external balance goals
• B)Under a fixed exchange rate system,potential conflicts arise between the goals of internal balance and external balance
• C)Countries may find that expansionary policies,which might be desired in order to reduce the unemployment rate,lead to income levels that are too high to balance the trade account and could lead to balance of payments problems
• D)Both a and c
• E)Both b and c

---

Definitions:

Strategically Important

Describes a location, asset, or aspect that holds significant value or advantage in terms of military, economic, or political strategy.

Treaty of Utrecht

A series of agreements signed in 1713 between various European states, ending the War of the Spanish Succession and marking the emergence of Britain as a dominant world power.

War of Spanish Succession

The War of Spanish Succession (1701-1714) was a major European conflict fought over who would inherit the Spanish throne, leading to significant shifts in power dynamics among European states.