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
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
举一反三
- 7. If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange rate value of the domestic currency:
- 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 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
- One implication of an empirical investigation of the Marshall-Lerner condition is that, in the ________, a real ________ in a nation's currency is likely to ________ the country's current account balance. ( ) A: long-run; appreciation; improve B: short-run; depreciation; improve C: long-run; depreciation; improve D: short-run; appreciation; improve
- The __________ exchange rate is the price for “immediate” currency exchange. A: Current B: Forward C: Future D: Spot