If the Government of Colombia Implemented a Policy That Reduced

question 51

Multiple Choice

If the government of Colombia implemented a policy that reduced national saving,which statement would best predict the consequences?

• A) Its real exchange rate would depreciate,and Colombian net exports would rise.
• B) Its real exchange rate would depreciate,and Colombian net exports would fall.
• C) Its real exchange rate would appreciate,and Colombian net exports would rise.
• D) Its real exchange rate would appreciate,and Colombian net exports would fall.

---

Definitions:

Ironclad Ship

A type of warship in the mid-19th century, protected by iron or steel armor plates, significantly changing naval warfare.

Telegraph

An early form of long-distance communication technology that transmitted messages in the form of electrical signals.

Union Forces

Refers to the military forces of the United States (the North) during the American Civil War, fighting against the Confederate States.