To Correct a Balance of Payments Deficit and Inflation a Nation

question 2

Multiple Choice

To correct a balance of payments deficit and inflation a nation requires a:

• A)devaluation and expansionary fiscal and monetary policies
• B)devaluation and contractionary fiscal and monetary policies
• C)devaluation or revaluation and contractionary fiscal and monetary policies
• D)revaluation and either expansionary or contractionary fiscal and monetary policies

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Definitions:

Blisspoint

The optimal level of consumption where any further increase would lead to a decrease in overall satisfaction or happiness, often used in food science and economics.

Set Point

A theory suggesting that the body regulates its weight and energy balance through an internal control mechanism located in the hypothalamus.

Probability-Differential Theory

A theory suggesting that the probability of choosing a specific behavior is based on the relative reinforcement of that behavior compared to alternatives.

Premack's Probability-Differential Theory

A theory that suggests that more probable behaviors can serve as reinforcers for less probable behaviors, indicating a hierarchy of preferred activities.