The Appropriate Expenditure-Switching Policy to Correct a Current Account Deficit

question 45

Multiple Choice

The appropriate expenditure-switching policy to correct a current account deficit is:

• A) Contractionary monetary policy
• B) Expansionary fiscal policy
• C) Currency devaluation
• D) Currency revaluation

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Definitions:

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act.

Rapid Eye Movement

A phase of sleep characterized by rapid movements of the eyes, low muscle tone, and the propensity to dream vividly.

Sigmund Freud

A neurologist from Austria who established psychoanalysis as a technique for addressing mental disorders through conversational therapy between a psychoanalyst and their patient.

Non-Rapid Eye Movement

A phase of sleep characterized by slower brain waves, decreased body movement, and the absence of rapid eye movements, contrasting with REM sleep.