If the Government of a Small Open Economy Wishes to Reduce

question 132

Multiple Choice

If the government of a small open economy wishes to reduce a trade deficit, which policy action will be successful in achieving this goal?

• A) increasing taxes
• B) increasing government spending
• C) increasing investment tax credits
• D) imposing protectionist trade policies

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Definitions:

Low-income Groups

Sections of the population that earn significantly less than the average income, often facing economic hardship and limited access to resources.

Hearing Impairment

A partial or total inability to hear; it can vary from slight to profound deafness.

Ableism

Discrimination and social prejudice against people with disabilities, favoring those who are not disabled.

Downward Drift Hypothesis

The assertion that those with mental illnesses, unable to finish their education or secure a job, tend to drift into low-income groups.