Macroeconomic policy by one nation can be offset by the macroeconomic policy of other nations.Question 4Select one:TrueFalse

The statement that macroeconomic policy by one nation can be offset by the macroeconomic policy of other nations is generally True.

In a global economy, the interconnectedness of countries means that the monetary and fiscal policies of one nation can influence and be influenced by those of others. For instance, if one country adopts an expansionary monetary policy (lowering interest rates), this could lead to capital outflows to other countries with higher interest rates, thereby affecting exchange rates and economic conditions globally. Additionally, policies such as tariffs or trade agreements can create ripple effects that impact economic activities across borders as they might affect import and export dynamics, consequently affecting growth rates, inflation, and employment levels in other nations.

Thus, decisions made by one nation in terms of macroeconomic policies can indeed be offset or counterbalanced by the policies enacted by others, supporting the statement as true.