According to the Monetary Approach to the Balance of Payments,a

question 5

Multiple Choice

According to the monetary approach to the balance of payments,a surplus nation will have to give up in the long-run its goal of:

• A)price stability
• B)fixed exchange rate
• C)price stability or fixed exchange rate
• D)price stability and fixed exchange rate

---

Definitions:

English Liberty

The concept and practice of personal freedoms and rights historically protected by law in England, often cited as a foundation for modern democratic systems.

Anglo-American Colonies

Refers to colonies in North America that were under British rule, which later formed the United States of America.

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England in the mid-17th century, leading to the trial and execution of Charles I, the dictatorship of Oliver Cromwell, and eventually the restoration of the monarchy.

Magna Carta

A charter of liberties agreed to by King John of England in 1215, considered a foundational document establishing principles of legal authority and individual rights.