The open-economy macroeconomic processes for correcting balance-of-payments disequilibria are collectively called :
A)discretionary fiscal policy
B)foreign exchange market
C)monetary policy
D)adjustment in the balance of payments

Question

Quizplus · Accepted Answer

The open-economy macroeconomic processes for correcting balance-of-payments disequilibria are collectively called adjustment in the balance of payments. This refers to the various economic policies and measures that countries can use to address imbalances in their balance of payments, such as changes in exchange rates, trade policies, and capital controls. Discretionary fiscal policy and monetary policy also play a role in correcting balance-of-payments disequilibria, but they are not the collective name for these processes. The foreign exchange market is a mechanism for exchanging currencies and does not inherently correct balance-of-payments disequilibria.

The Open-Economy Macroeconomic Processes for Correcting Balance-Of-Payments Disequilibria Are Collectively