Which of the Following Are Ways That a Government Can

question 96

Multiple Choice

Which of the following are ways that a government can defend an overvalued exchange rate?

• A)Introducing quotas or tariffs.
• B)Introducing foreign exchange controls.
• C)Negotiating voluntary export restrictions.
• D)Creating a recession at home.
• E)Introducing quotas or tariffs,introducing foreign exchange controls,negotiating voluntary export restrictions,and creating a recession at home.

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Definitions:

Explicit Costs

Payments made directly to individuals or entities for business operations, including salaries, leasing costs, and supplies.

Implicit Costs

The opportunity costs of using resources that a firm already owns, rather than the expenses directly paid out.

Explicit Costs

Direct, out-of-pocket expenses incurred by a firm or individual for business operations or activities.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenues, using generally accepted accounting principles.