After a Devaluation, All Other Things Equal, a Country's Balance

question 16

Multiple Choice

After a devaluation, all other things equal, a country's balance of payments on the current account will likely:

• A) increase.
• B) decrease.
• C) remain the same.
• D) fluctuate randomly.

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Definitions:

Nikita Khrushchev

A Soviet statesman who led the Soviet Union during part of the Cold War as the first secretary of the Communist Party and as chairman of the Council of Ministers.

Reign

The period during which a sovereign rules over a monarchy, characterized by the policies and the historical context of their governance.

Marshall Plan

A U.S.-initiated program providing massive financial aid to Western Europe after World War II to rebuild economies and prevent the spread of communism.

Communism

A political and economic ideology that advocates for a classless society in which all property is publicly owned, and each person works and is paid according to their abilities and needs.