For this question, assume that equilibrium output is determined in the ZZ-Y diagram. Further assume that policy makers' goals are (1 ) to achieve balanced trade (i.e., NX = 0); and (2 ) to achieve a target level of output, say YT. Now, suppose that the initial level of equilibrium output is equal to YT (i.e., Y = YT) and that a trade deficit exists at this initial level of output. Which of the following policy actions would most likely enable the policy makers to achieve their two goals simultaneously?
A) a reduction in government spending
B) convince the country's trading partners to pursue policies that will cause an increase in foreign income (Y)
C) a reduction in the real exchange rate
D) a reduction in taxes
E) a simultaneous increase in government spending and reduction in the real exchange rate
F) none of the above
Question 2
As fiscal consolidation takes place, the central bank should
A) decrease the policy rate.
B) increase the policy rate.
C) increase inflation rate.
D) decrease money supply.
Recombinants are meiotic output different from meiotic input
Anatomy diagram
Reverse Osmosis Schematic Diagram
Diagram showing how the translation of the mRNA and the synthesis of proteins are carried out by the ...
economic question
The position of the fetus is first determined by ultrasound