If a Country Runs a Deficit on Its Balance of Payments

question 283

Multiple Choice

If a country runs a deficit on its balance of payments for goods and services, to pay for its imports, it must:

• A) raise taxes.
• B) print new money.
• C) sell assets to foreigners.
• D) decrease its exports.

---

Definitions:

Kant

Immanuel Kant was a German philosopher who is a central figure in modern philosophy and is known for his contributions to epistemology, ethics, and aesthetics.

Hypotheses and Theories

Hypotheses are proposed explanations made on the basis of limited evidence as a starting point for further investigation, whereas theories are well-substantiated explanations acquired through the scientific method and repeatedly tested and confirmed through observation and experimentation.

Observed Facts

Information or knowledge directly perceived or convincingly ascertained through the process of observation and empirical investigation.

Scientists

Individuals engaged in systematic activities to acquire knowledge about the natural world through observation and experimentation.