Concerning Currency Devaluation (Depreciation),the Elasticities Approach and the Absorption Approach

question 90

Multiple Choice

Concerning currency devaluation (depreciation) ,the elasticities approach and the absorption approach are theories that deal with

• A) exports and imports of goods and services
• B) the domestic supply and demand of money
• C) capital inflows and capital outflows
• D) rates of inflation and rates of deflation

---

Definitions:

Economic Growth

An increase in the economic output and prosperity of a country, often measured by the rise in its Gross Domestic Product (GDP).

Government Expenditures

The total amount of money that government spends in a certain period, including spending on healthcare, education, infrastructure projects, and defense.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Economic Growth

An increase in the economy's capacity to produce goods and services, often measured by the rise in real GDP over time.