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:

Corporate Tax Rate

The proportion of a company's earnings allocated to the state in the form of taxes.

Personal Income

The total amount of income earned by an individual from all sources, including employment, investments, and other forms of earnings.

Pre-tax Earnings

The amount of income earned before taxes have been deducted.

Bond Issue

The process by which a corporation or government raises funds by selling bonds to investors.