A nation experiences overall balance if it achieves:
A) Balance-of-payments equilibrium,full employment,and price stability
B) Balance-of-payments equilibrium,maximum productivity,and price stability
C) Full employment,price stability and no change in its money supply
D) Full employment,price stability,and maximum productivity

Question

Quizplus · Accepted Answer

Balance-of-payments equilibrium ensures that a nation is not borrowing excessively from other countries, which can lead to debts and financial instability. Full employment ensures that all available resources are being utilized and that the economy is producing at its maximum potential. Price stability ensures that inflation is low, which helps in maintaining the purchasing power of the currency. Therefore, achieving these three goals ensures overall balance in a nation's economy. Option B is incorrect because while maximum productivity is desirable, it is not necessary for overall balance. Option C is incorrect because changes in the money supply may be required to achieve price stability, and there can still be an overall balance without any change in money supply. Option D is incorrect because while maximum productivity is desirable, it is not necessary for overall balance.

A Nation Experiences Overall Balance If It Achieves