Which of the Following Statements Is Correct About the Absorption

question 15

Multiple Choice

Which of the following statements is correct about the absorption approach?
I.If a country is operating below its full-employment level,it cannot improve trade balance by a currency devaluation.
II.If a country is operating at its full-employment level,the only way to improve trade balance is by reducing the domestic absorption.

• A) Only I is correct.
• B) Only II is correct.
• C) Both I and II are correct.
• D) Neither I nor II is correct.

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Definitions:

Intellectual Capital

Represents the intangible assets of an organization, including employee knowledge, brand equity, and customer relationships, that contribute to its competitive advantage.

Organizational Behavior

The study of human behavior in organizational settings, focusing on individual, group, and structural dynamics to improve organizational effectiveness.

Ethics

Ethics refers to the moral principles that govern an individual's behavior or the conducting of an activity, emphasizing what is right or wrong.

Intellectual Capital

The value of an organization's collective knowledge, skills, inventions, or capabilities, which contributes to its competitive advantage.