To Correct a Balance of Payments Deficit and Inflation a Nation

question 10

Multiple Choice

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

• A)contractionary fiscal policy and easy monetary policy
• B)contractionary fiscal policy and tight monetary policy
• C)expansionary fiscal policy and tight monetary policy
• D)any of the above depending on the level of inflation and the size of the initial deficit

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Definitions:

Unpleasant Experiences

Experiences that cause discomfort, distress, or pain, either physically or emotionally.

Elaborative

Pertaining to providing additional information or detail that enhances understanding, often used in memory strategies or learning techniques.

Repetitive

Characterized by repeating the same task or action over and over again.

Prospective

Relating to or effective in the future; often used to describe studies or methods that observe outcomes over a certain period.