Solved

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

Question 65

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions