Question: When in an economy current account surplus and economy in recession position then what will be the remedy process to achieve external balance?
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a.Exchange rate appreciation
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b.Exchange rate depreciation
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c.Contractionary fiscal policy
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d.Expansionary fiscal policy
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e.None of the above
Answer: a
 Exchange rate appreciation b) Exchange rate depreciation c) Contractionary fiscal policy d) Expansionary fiscal policy e) None of the above Ans. a) Exchange rate appreciation
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