A Devaluation Can Help Reduce A(n)

question 133

Multiple Choice

A devaluation can help reduce a(n) :
I. inflationary gap.
II. deflationary gap.

• A)I only
• B)II only
• C)I and II
• D)neither I nor II

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Definitions:

Consumer Surplus

The gap between what consumers are prepared and capable of spending on a product or service versus what they actually spend.

Trade Restrictions

Measures such as tariffs, quotas, and import bans implemented by governments to control the amount and type of goods and services that can enter or leave a country.

National Security

The protection and safety of a country's citizens and economy.

International Trade

The exchange of goods and services between countries, which can significantly impact a country's economy through imports and exports.