The More Elastic Is a Nation's Demand and Supply of Foreign

question 22

Multiple Choice

The more elastic is a nation's demand and supply of foreign exchange the:

• A) larger is the devaluation or depreciation required to correct a deficit of a given size in the nation's balance of payments
• B) smaller is the devaluation or depreciation required to correct a deficit of a given size in the nation's balance of payments
• C) less feasible is a flexible exchange rate system
• D) less feasible is devaluation as a policy to correct a deficit in the nation's balance of payments

---

Definitions:

Community Roles

The functions and responsibilities that individuals assume in a community to contribute to its well-being and functioning.

Assumptions

Beliefs or ideas taken for granted without proof.

Beliefs

Convictions or acceptances that certain things are true or real, often without empirical evidence.

Popular Psychology

An informal approach to understanding the mind and behavior, often found in self-help books and media, rather than in academic psychology or research.