Author Question: In a fixed exchange rate regime, which of the following policies could lead to a greater trade ... (Read 55 times)

Coya19@aol.com · **on:** Jun 30, 2018

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.

Question 2

Which of the following will likely cause an increase in output per worker?

A) an increase in education expenditures
B) an increase in the saving rate
C) an increase in on-the-job training
D) all of the above