Assume That a Country Is at Full Employment and Wants

question 20

Multiple Choice

Assume that a country is at full employment and wants to improve its trade deficit by
Devaluing its currency.Using the absorption approach which of the following methods will improve the trade deficit?
I.Decrease government spending
II.Decrease consumption taxes
III.Decrease income taxes

• A) I only
• B) II only
• C) II and III
• D) I, II, and III

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Definitions:

Investors'

individuals or entities that allocate capital with the expectation of receiving financial returns.

High Dividend Payout

Refers to a situation where a company distributes a large portion of its earnings to shareholders in the form of dividends, often viewed as a sign of financial stability.

Clientele Groups

Specific segments of a market or customer base that a company targets or serves, based on shared characteristics or preferences.

Current Income

The earnings or revenue that a company generates from its normal business operations in the current period.