The practice of ______________ is a particularly ingenious method of controlling imports as it encourages the importation of goods the government deems desirable and discourages importation of goods the government does not want.

Question

Quizplus · Accepted Answer

A differential exchange rate is a system wherein the government regulates the exchange rate of its currency with the currencies of other countries to promote the importation of desirable goods and discourage the importation of undesirable goods. By adjusting the exchange rate of its currency, the government can make the prices of imported goods more or less expensive, making it more or less desirable for consumers to buy them. This is an especially effective way for governments to control imports without resorting to outright bans or quotas.

The Practice of ______________ Is a Particularly Ingenious Method of Controlling