Overvalued Exchange Rates Were a Persistent Problem Under ISI Policies

question 35

Multiple Choice

Overvalued exchange rates were a persistent problem under ISI policies.In part,this was a deliberate policy in order to

• A)increase imports.
• B)discourage exports.
• C)help targeted industries sell their exports.
• D)help targeted industries buy imports.
• E)increase the competition for targeted industries.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to raise revenue.

Direct Welfare

Governmental assistance provided directly to individuals in the form of cash payments or services, aimed at improving the living conditions of the economically disadvantaged.

National Defense

The governmental actions, policies, and military measures taken to protect a country from external threats and ensure national security.

Trade Protection

Involves government policies and measures aimed at shielding domestic industries from foreign competition, using tools such as tariffs, quotas, and subsidies.