In Some Cases,a Country's Attempts to Reduce Its Money Supply

question 21

Multiple Choice

In some cases,a country's attempts to reduce its money supply growth and correct a persistent ______________ deficit could force the country into recession and create high unemployment.

• A) balance-of-payments
• B) fixed parity
• C) floating exchange rate
• D) fixed exchange rate
• E) bank

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Definitions:

Active Transport

The movement of substances across cell membranes against a concentration gradient, requiring energy.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration.

Concentration

The amount of a substance per defined space or volume; in a solution, it is the amount of solute dissolved in a unit volume of solvent.

Distilled Water

Water that has been purified through distillation, removing impurities and minerals.