To Achieve Internal Balance Under a Fixed Exchange Rate System,what

question 9

Multiple Choice

To achieve internal balance under a fixed exchange rate system,what policies should be used?

• A)Expenditure-changing policies
• B)Devaluation policies
• C)Revaluation polices
• D)Expenditure-switching policies

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Definitions:

Imports

Goods and services that are brought into a country from abroad for sale.

Price

The amount of money required to purchase a product or service.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and what they end up actually paying.

Willing To Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value or utility gained from the purchase.