In Using Exchange Controls, a Nation Attempts to Eliminate a Balance

question 48

Multiple Choice

In using exchange controls, a nation attempts to eliminate a balance of payments deficit by:

• A)limiting its imports to the dollar value of its exports.
• B)decreasing the nation's domestic price level.
• C)limiting its exports to the dollar value of its imports.
• D)appreciating the value of its currency.

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Definitions:

Break Even

The point at which total revenue equals total costs, making a business neither profitable nor unprofitable at this juncture.

Cost Curves

Graphical representations of the costs associated with producing different levels of output, aiding in economic and business decision-making.

Profit Or Loss

The financial result of a business's operations, calculated as total revenues minus total expenses.

Cost Curves

Graphical representations that show how the cost of producing a good or service varies with the quantity produced.