Assume that you have complete monetary and fiscal control of a country (in the face of...

 

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Assume that you have complete monetary and fiscal control of a country (in the face of a global pandemic) that has low inflation, high unemployment, low interest rates and a well-educated workforce. Your primary goals are full employment and price stability. Your workforce, while highly educated, is highly compensated relative to other countries that can manufacture goods at a lower cost. These low price producers maintain their advantage by pegging their currency to yours. Given your stated goals and complete control, what steps would you take to improve the balance of trade and craft the most robust domestic economy possible? Assume that you have complete monetary and fiscal control of a country (in the face of a global pandemic) that has low inflation, high unemployment, low interest rates and a well-educated workforce. Your primary goals are full employment and price stability. Your workforce, while highly educated, is highly compensated relative to other countries that can manufacture goods at a lower cost. These low price producers maintain their advantage by pegging their currency to yours. Given your stated goals and complete control, what steps would you take to improve the balance of trade and craft the most robust domestic economy possible?

Answer rating: 100% (QA)

To improve the balance of trade and craft a robust domestic economy considering the provided scenario several strategic steps can be taken Invest in Infrastructure and Innovation Allocate resources to... View the full answer