Which of the Following Statements Is Correct About the Absorption

question 15

Multiple Choice

Which of the following statements is correct about the absorption approach?
I.If a country is operating below its full-employment level,it cannot improve trade balance by a currency devaluation.
II.If a country is operating at its full-employment level,the only way to improve trade balance is by reducing the domestic absorption.

• A) Only I is correct.
• B) Only II is correct.
• C) Both I and II are correct.
• D) Neither I nor II is correct.

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Definitions:

Cross-Cultural

Pertaining to or comparing two or more different cultures, often emphasizing the interaction and comparative study of their differences and similarities.

Cross-Border Mergers

Transactions where companies from different countries combine their operations or assets, often to expand market reach or consolidate industry positions.

Direct Foreign Investment

A financial commitment by an individual or company from one country into business ventures or assets in another country, whether by setting up business activities or purchasing business assets.

Export Cooperatives

Organizations formed by producers with the aim of marketing and selling their products in foreign markets collectively.