According to the Monetary Approach to the Balance of Payments,which

question 29

Multiple Choice

According to the monetary approach to the balance of payments,which of the following economic events would help a country to resolve its balance of trade deficit?

• A) An increase in money supply
• B) A decrease in money supply
• C) A fall of foreign price level
• D) A fall of domestic income

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Definitions:

Net Exports

The difference between a country's total value of exports and its total value of imports over a specific time period.

GDP

Gross Domestic Product is the total valuation of all products and services generated inside a nation's boundaries during a certain time frame.

Sectors

Distinct subsets of the economy, categorized by the type of activity involved, such as the agriculture, manufacturing, or services sectors.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known for its role in international trade and investment.