One Method for a Deficit Country to Correct the Situation

question 43

Multiple Choice

One method for a deficit country to correct the situation under a fixed exchange rate system is to

• A)increase aggregate demand with stimulative monetary policy.
• B)increase aggregate supply with tax cuts.
• C)decrease aggregate demand with restrictive fiscal and monetary policy.
• D)decrease aggregate supply with restrictive fiscal policy.

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Definitions:

World's Oil

Refers to the global production, distribution, and consumption of crude oil as a key energy source.

Saudi Arabia

A sovereign country in the Middle East, known for its vast oil reserves, which play a central role in its economy, and as the birthplace of Islam.

Price Of Oil

The cost per barrel of crude oil, influenced by factors such as supply, demand, geopolitical tensions, and production decisions by OPEC and non-OPEC countries.

Fast Food Chains

A series of restaurants offering quick service and a menu of fast food cuisine spread across multiple locations.