The Appropriate Expenditure-Switching Policy to Correct a Trade Surplus Is

question 38

Multiple Choice

The appropriate expenditure-switching policy to correct a trade surplus is

• A) currency revaluation.
• B) currency devaluation.
• C) expansionary monetary policy.
• D) contractionary fiscal policy.

Compare and contrast the values and priorities of different economies.

Identify the components of a nation's infrastructure relevant to global commerce.

Understand the strategies national governments use to influence their currency strength and exports.

Describe the function and types of tariffs and their impact on trade.

---

Definitions:

Allied Troops

Refers to the military forces of allied countries, typically in the context of the First and Second World Wars, who joined forces against common enemies.

Sharp Economic Downturn

A rapid and severe decline in economic activity, marked by significant drops in GDP, employment, and consumer spending.

Gulf War

A conflict that occurred in 1990-1991, initiated by Iraq's invasion of Kuwait and resulting in a military campaign by coalition forces led by the United States to expel Iraqi troops.

Economic Downturn

A period of poor economic performance across markets and countries, characterized by a decline in production, sales, and employment.