A Country with Budget Deficit Which Is Also at Full

question 32

Multiple Choice

A country with budget deficit which is also at full employment can improve its deficit situation by allowing its currency to depreciate,only if,

• A)the real domestic absorption is reduced
• B)the real domestic absorption is increased
• C)level of imports can be increased
• D)income can be increased

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Definitions:

Relative Terms

Concepts or measurements that are dependent on or compared to another variable or context.

Prevalent

Widespread in a particular area at a certain time; commonly occurring or generally accepted.

Age 65

Commonly recognized as the traditional retirement age in many cultures and the eligibility age for senior benefits in some welfare systems.

Age 18

Represents the age at which an individual is often considered a legal adult in many countries, gaining new rights and responsibilities.