Which of the following would help eliminate the trade deficit?
A)Reduced reservation wages
B)A rise in the exchange rate
C)Expansionary fiscal policy
D)Lower tariffs

Name: Which of the following would help eliminate the trade deficit? A)Reduced reservation wages B)A rise in the exchange rate C)Expansionary fiscal policy D)Lower tariffs
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Question

Quizplus · Accepted Answer

Reducing reservation wages can make domestic labor more competitive, potentially increasing exports and reducing imports, thus helping to eliminate the trade deficit.

Which of the Following Would Help Eliminate the Trade Deficit