Suppose Policy Makers Want to Increase Y and Keep NX

question 21

Multiple Choice

Suppose policy makers want to increase Y and keep NX constant.Which of the following policies would most likely achieve this?

• A)an increase in government spending
• B)a real depreciation
• C)an increase in government spending and a reduction in the real exchange rate
• D)a reduction in the real exchange rate
• E) encourage the country's trading partners to implement policies that will cause an increase in foreign income (Y*)

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Definitions:

Lean Practices

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing work that is not of value.

Activity Analyses

A process in business accounting and management used to assess the efficiency and productivity of various operations within a company.

Service Businesses

A business providing services rather than products to customers.

Administrative Processes

Activities and procedures implemented within an organization to ensure efficient operation and management.