In a Fixed Exchange Rate Regime,which of the Following Policies

question 62

Multiple Choice

In a fixed exchange rate regime,which of the following policies could lead to a greater trade deficit and leave aggregate demand constant?

• A)devalue the currency.
• B)increase government spending.
• C)decrease government spending.
• D)decrease government spending and devalue the currency.
• E)increase government spending and revalue the currency.

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Definitions:

Average Queue Length

The average number of items or people waiting in line over a specified period of time, used in analyzing the efficiency of service systems.

Utilization Factor

The ratio of the actual time a system, machine, or resource is used to the total time it is available, often expressed as a percentage to indicate efficiency or capacity usage.

Queue Discipline

The rules or policies that determine the order in which tasks or customers are processed or attended to.