Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials. Which of the following methods would most likely achieve these dual objectives?
A) devaluing its currency
B) enacting selective import restrictions
C) using tight monetary policies to deflate price levels
D) spurring productivity increases through general tax breaks for industry
Question 2
Countries most likely establish export restrictions to ________.
A) ensure their population obtain the goods first
B) raise prices in foreign markets
C) encourage substitute products
D) reduce domestic production
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