If a Nation Wants to Maintain a Fixed Exchange Rate

question 81

Multiple Choice

If a nation wants to maintain a fixed exchange rate at a time when supply and demand are causing an excess of imports over exports, the nation might

• A) shift to a more expansionary monetary policy.
• B) shift to a more restrictive monetary policy.
• C) reduce its trade barriers (tariffs and quotas).
• D) tax exports and subsidize imports.

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Definitions:

Advertising/Promotion

Techniques and strategies used to communicate the benefits of a product, service, or brand to encourage sales.

Top Executives

Individuals who hold the highest-ranking positions in a company, responsible for making strategic decisions.

Long-Range

Refers to planning, forecasting, or strategies that cover an extended future period, often used to set and achieve long-term goals.

Operations Manager

An individual in charge of directing, designing, and controlling production procedures and altering corporate functions in the manufacture of goods or services.