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LAN Country a medium sized country with a population of approx. 30 million people (including children under age 10, roughly 2% of the total population)
LAN Country a medium sized country with a population of approx. 30 million people (including children under age 10, roughly 2% of the total population) experienced several economic downturns from 2020 - 2021) due to C-19 pandemic, especially in key sectors including global trade, decreased domestic market consumption, manufacturing - supply chain issues, that caused general concerns with LAN's capital market flows. During 2022 - 2023, LAN's economic indicators noted reasonable growth with a 3% - 5% increase in overall economic activity which LAN hopes to build on in the next 3 - 5 years. One economic hurdle in 2023 - 2024 was/is a somewhat weak currency compared to similar sized countries. To gain some competitive edge, LAN country is trying to use a blend of monetary and fiscal policies to boost the nation's promising import/export activities with other trading partners. (a) Given LAN overall economic outlook, which type of policy (based on ch. 30.4) would you suggest the country utilize to manage its wavering currency. Briefly describe the type of policy you suggested. Explain why you think this policy will yield positive results for the country's import/export activities. Include one economic reason to support your explanation. (ref. ch. 29.4
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