In a Stable Foreign Exchange Market,a Nation Can Correct a Deficit

question 26

Multiple Choice

In a stable foreign exchange market,a nation can correct a deficit in its balance of payments by allowing its currency to __________.

• A)appreciate
• B)depreciate
• C)remain constant
• D)none of the above

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Definitions:

Dissolve

The formal closing or termination of an entity, such as a corporation or partnership, often involving the distribution of assets to claimants.

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

Independent Agencies

Government organizations that operate independently of the executive departments, tasked with regulating and overseeing specific areas of public policy.

Social Regulation

Rules imposed by government to correct market failures and achieve social policy goals, such as environmental protection and worker safety.