Other fundamental things equal, an increase in the exchange rate value of the domestic currency will cause the current account to: A.fluctuate initially. B.equal the official settlements balance. C.move toward a long-run surplus. D. move toward a deficit.
Other fundamental things equal, an increase in the exchange rate value of the domestic currency will cause the current account to: A.fluctuate initially. B.equal the official settlements balance. C.move toward a long-run surplus. D. move toward a deficit.
Chapter18: International Trade And Finance
Section: Chapter Questions
Problem 12SQ
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Other fundamental things equal, an increase in the exchange rate value of the domestic currency will cause the current account to:
A.
fluctuate initially.
B.
equal the official settlements balance.
C.
move toward a long-run surplus.
D. move toward a deficit.
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