Which of the Following Would Increase the Current Account of Country

question 64

Multiple Choice

Which of the following would increase the current account of Country X? Country Y is Country X's sole trading partner.

• A) Inflation increases in countries X and Y by comparable amounts.
• B) Country X's and Country Y's currencies depreciate by the same amount.
• C) Country X imposes tariffs on imports from Country Y, and Country Y retaliates by imposing an identical tax on X's exports.
• D) The central banks of Country X and Country Y reduce the money supply to increase interest rates.
• E) Country X imposes a quota on imports, and Country Y retaliates by imposing an identical quota on X's exports.

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Definitions:

Symbolic Interactions

A perspective in sociology that interprets social interactions based on the meanings individuals impose on objects, events, and behaviors.

Circular Questioning

A technique used in systemic therapy where questions are asked to understand relationships and interactions among family members by exploring different perspectives.

Cognitive Restructuring

A psychological technique that aims to challenge and change irrational and negative thoughts, beliefs, and attitudes.

Enactment

The process of acting out or expressing thoughts, feelings, or behaviors, often in a therapeutic context to gain insight.