Which of the following would be a valid statement about a government plan to eliminate a trade deficit?

A. A decrease in the trade deficit will decrease investment in the country.

B. An effective strategy would be to increase the money supply and increase the value of the national currency.

C. An effective strategy would be to increase interest rates and increase the value of the national currency.

D. This could be achieved through dramatically increasing aggregate supply.

E. The increase in net exports will result in a decrease in aggregate demand.

Answer rating: 100% (QA)

A trade deficit is an economic measure of international trade in which a ... View the full answer