Thank you vad3tha for all the effort.
Curbing government spending has been demonstrated to raise the value of a country's currency over time. However, many economists no longer recommend this policy.
A currency of lesser value causes a country's exports to be more competitive in the international market, encouraging domestic industries and making the economy more attractive to foreign investment.
1.Curbing Govt Spending -> raise currency value.
2.economists no longer recommend 1.
2. lesser currency value -> country's export competitive -> the economy more attractive to foreign investment.
The statements above most strongly support which of the following inferences?
(A) Limited government spending can also lead to a reduction in the national deficit.
>> Nothing mentioned reg national deficit.
(B) Curbing government spending can make a country's exports less competitive. Correct.
(C) Many economists now recommend higher levels of government spending.
>> They don't recommend 1 but not mentioned if they recommend HGS.
(D) An increase in the value of a currency will result in reduced government spending.
>> Reverse of wht is mentioned.Cant be proved from arg.
(E) Competitive exports indicate a-weak currency.
>> Not always ;reverse of wht is mentioned in arg.