Which of the following measures is suitable for the balance of payments problems?
-Drawing on reserves
A) A severe and fundamental deficit
B) A temporary balance of payments surplus
C) A moderate surplus arising from the economy operating with a low level of aggregate demand
D) A mild deficit that is expected to disappear as the world economy recovers from recession
E) A large and persistent surplus because of the country's much lower underlying rate of inflation f) A moderate deficit associated with a too rapid recovery from recession.
Correct Answer:
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