If Canada suffered from "fundamental disequilibrium," and its government choose not to devalue its currency, a...
If Canada suffered from "fundamental disequilibrium," and its government choose not to devalue its currency, a likely consequence of this would be
Multiple Choice
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a persistent trade surplus.
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a balance-of-payments equilibrium.
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an increase in exports.
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high unemployment.
Homework Answers
It is given that there is a fundamental disequilibrium and the government is not likely to devalue the currency. This implies that there is a balance of payment crisis and there is a trade deficit. if the government is not helping the economy reducing or eliminating this trade deficit, it will persist even in the long run and will result in lowering the growth rate of GDP and increasing the rate of unemployment
Select high unemployment.
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