I. borrow overseas
II. increase trade restrictions and exchange controls
III. undertake expansionary monetary and fiscal policies
IV. Undertake expenditure-reducing policies
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II and IV only
Related Mcqs:
- Countries such as ________ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war ?
A. Japan and Korea
B. Brazil and Argentina
C. Algeria and Yugoslavia
D. Singapore and Malaysia - Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?
A. Gold currency
B. Hard currency
C. Silver currency
D. Soft currency - The external benefits of using cars are ____ and the external costs are _____?
A. low; low
B. high; high
C. low; high
D. high; low - High and persistent inflation is caused by ?
A. unions increasing wages too much
B. OPEC raising the price of oil too much
C. governments increasing the quantity of money too much
D. regulations raising the cost of production too much - In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
A. All of these answers could be source of a persistent discriminatory wage differential
B. the customer
C. the government
D. the employer - An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?
A. relatively small; more difficult
B. relatively small; easier
C. relatively large; more difficult
D. relatively large; easier - When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
A. free trade area
B. customs union
C. common market
D. economic union - A budgetary deficit means ?
A. Total expenditure is more than total revenue
B. Current expenditure is more than current revenue
C. Capital expenditure is more than capital revenue
D. Total expenditure is more than current revenue - A nation will a current account deficit will be ?
A. lending more money to other nations
B. experiencing a surplus in exports of goods an services
C. reducing its indebtedness to other nations
D. going further into debt with other nations - An increase in the budget deficit is ?
A. an increase in public saving
B. a decrease in private saving
C. None of these answers
D. a decrease in public savings
