Suppose the United States Has a Fixed Exchange Rate, and It

question 69

Multiple Choice

Suppose the United States has a fixed exchange rate, and it faces domestic recession and a trade deficit.Assuming it desires overall balance, if the United States devalues the dollar, other things equal one would expect which of the following to occur?

• A) the recession to become less severe and the trade deficit to become less severe
• B) the recession to become more severe and the trade deficit to become less severe
• C) the recession to become less severe and the trade deficit to become more severe
• D) the recession to become more severe and the trade deficit to become more severe

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Definitions:

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction, verbal and nonverbal communication, and restrictive and repetitive behaviors.

Parkinson's Disorder

A progressive neurological disorder characterized by motor symptoms such as tremors, stiffness, and slow movement, as well as non-motor symptoms.

Behavior Modification

A therapeutic approach using reinforcement and punishment to change undesirable behaviors to desired ones.

Antipsychotic Medications

Drugs used to manage psychosis, including bipolar disorder, schizophrenia, and severe depression.