4. How to use the three monetary policies and the three fiscal policies to reduce BOP...

80.2K

Verified Solution

Question

Economics

4. How to use the three monetary policies and the three fiscalpolicies to reduce BOP deficit? Please explain how each policyworks, i.e., how economic entities react to the policy changes sothat the deficit will be reduced.

Answer & Explanation Solved by verified expert

3.7 Ratings (506 Votes)

A BOP deficit arises when the value of the imports of revenue from goods services inv exceeds the value of the exports Current account deficit reduction policies involve exchange rate devaluation making exports cheaper imports more expensive Reducing domestic demand and import spending eg tight fiscal policy higher taxes See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

4. How to use the three monetary policies and the three fiscal policies to reduce BOP...

80.2K

Verified Solution

Question

Economics

4. How to use the three monetary policies and the three fiscalpolicies to reduce BOP deficit? Please explain how each policyworks, i.e., how economic entities react to the policy changes sothat the deficit will be reduced.

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

What are the 5 components of a reflex arc? Identify (specifically) each component of the pupillary...

Two blocks of masses m and 2m are placed in contact on a smooth horizontal...

A grocery store has a discount of 13% off hand soap. At the same time,...

A fruit company delivers its fruit in two types of boxes: large and small. A...

STION 6 ation implies causation e Ise JESTION 7 positive relationship b is negative b...

2 We want to find the points on y x that are closest to 0...

The Securities and Exchange Commission appointed the Committee on Accounting Procedure. True False

how to fill out a trial balance

I need help with the general Ledger, trail balance and the AR-AP schedule plz ...

QUESTION 3: (40 marks) Project Accounting 3. Given is a table of revenue and costs...

Tor F: As correlation of two or more securities increase, the variance of the portfolio...

Waste Management Company's (WMC) general ledger indicates a cash balance of $23,440 as of September...