When a country ’s balance of payments deficit, what policies can be adopted in order to restore the balance of payments ( ).
A: Let the local currency depreciate
B: Let the local currency depreciate
C: Adopting tight monetary policy
D: Let the local currency appreciate
E: Taking an expansionary fiscal policy
F: Adopting an expansionary monetary policy
A: Let the local currency depreciate
B: Let the local currency depreciate
C: Adopting tight monetary policy
D: Let the local currency appreciate
E: Taking an expansionary fiscal policy
F: Adopting an expansionary monetary policy
举一反三
- According to the assignment rule, which of the following policy mixes<br/>is appropriate for a country with high inflation, a balance of<br/>payments deficit, and fixed exchange rates? ____. A: Expansionary fiscal policy and expansionary monetary policy B: Expansionary fiscal policy and contractionary monetary policy C: Contractionary fiscal policy and expansionary monetary policy D: Contractionary fiscal policy and contractionary monetary policy
- When a country has a large current account surplus, which policy can be adopted to reduce the surplus? A: Currency appreciation B: Tight fiscal policy C: Increasing export tax rebate D: Currency depreciation
- The government sells US dollars for domestic currency in foreign market to prevent its currency devaluation. This activity is known as（） A: financing policy B: expenditure change policy C: fiscal policy D: monetary policy
- The Marshall-Lerner condition can be used to determine ( ). A: Balance of payments B: Impact degree of currency depreciation on international balance of payments C: The impact of exchange rate fluctuations on international balance of payments D: Degree of currency depreciation
- The measures that can be taken to reduce the current account deficit or improve the current account balance are ( ). A: Reducing consumption or investment expenditure B: Depreciation of the local currency exchange rate C: Cutting government expenditure D: Appreciation of the exchange rate of the local currency