Exchange Rates and the Balance of Payments (id: 082346ef1)

本题目来源于试卷: Exchange Rates and the Balance of Payments，类别为 IB经济学

[单选题]
Devaluation would moec 3-taqg,x9w*b0ekest likely aid in achieving which of tmc2k v (:z5cjn77q zjshe following policy objectkc7 52 mjvqzs7:nzj c(ives?

A. Reducing inflation
B. Reducing inequality
C. Increasing employment
D. Increasing net imports


参考答案:  C


本题详细解析:

C

$\underset{‾}{\text{Explanation}}$:
Devaluing the currency would increase the volume of exports and decrease the volume of imports. Assuming the Marshall-Lerner condition is met, this will increase the value of (X-M), which increases AD, which increases employment.

Choice A is incorrect as stimulating AD will increase the price level.

Choice B is incorrect as there is no direct relationship between currency value and income/wealth inequality.

Choice D is incorrect as devaluing the currency directly increases export volume and reduces import volume.

微信扫一扫，分享更方便