Author Question: In the last 20 years, all of the countries in Africa have experienced positive economic growth. ... (Read 84 times)

123654777 · **on:** Jun 30, 2018

In the last 20 years, all of the countries in Africa have experienced positive economic growth.

Indicate whether the statement is true or false

Question 2

Describe the policies a nation would follow to correct a current account deficit. What are the primary purposes of each type of policy?

What will be an ideal response?

reversalruiz · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

FALSE

Answer to Question 2

Policy makers need to turn domestic expenditures away from foreign-produced products toward domestic products (expenditure switching) and reduce the overall level of demand in the economy (expenditure reducing). Expenditure reducing policies are intended to avoid inflation. Expenditure switching policies are intended to avoid recession.