Which of the Following Would Both Make a Country's Real

question 41

Multiple Choice

Which of the following would both make a country's real exchange rate rise?

• A)its budget deficit increases and bonds issued in the country become riskier
• B)bonds issued in that country become riskier and it imposes an import quota
• C)it imposes an import quota and the budget deficit increases
• D)None of the above are correct.

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Definitions:

Franklin Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for his New Deal programs during the Great Depression.

Nixon Administration

The period of U.S. governance under President Richard Nixon, notable for significant events like the Watergate scandal and Vietnam War policies.

Direct Payments

Cash transfers from governments or organizations to individuals, farmers, or businesses without any requirement for goods or services in return.

Federal Tax Receipts

The income received by the federal government from taxes, used to fund government spending and services.