Country X Wants to Eliminate Its Balance of Trade Deficit

question 52

Multiple Choice

Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials.Which of the following methods would most likely achieve these dual objectives?

• A)devaluing its currency
• B)enacting selective import restrictions
• C)using tight monetary policies to deflate price levels
• D)spurring productivity increases through general tax breaks for industry

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Definitions:

Terror

The use of extreme fear as a means of coercion, often involving violence and threats, to achieve certain ends such as political, religious, or ideological goals.

Directorate

refers to a form of government or a governing body, such as the five-member Directory that ruled France from 1795 to 1799 during the latter stages of the French Revolution.

Conservative Body

A group or organization that advocates for maintaining traditional values and resisting major changes in societal or political structures.