2-16 In a system of fixed exchange rates, the automatic balance-of-payments adjustment process for a country with a balance of payments deficit would theoretically involve (among other things) ________ in the interest rate and ________ in national income. Select one: a. a decrease / a decrease b. a decrease / an increase c. an increase / an increase d. an increase / a decrease

Exploring Economics
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Author:Robert L. Sexton
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Chapter29: International Finance
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Q2-16
In a system of fixed exchange rates, the automatic balance-of-payments adjustment process for a country with a balance of payments deficit would theoretically involve (among other things) ________ in the interest rate and ________ in national income.
Select one:
a. a decrease / a decrease
b. a decrease / an increase
c. an increase / an increase
d. an increase / a decrease
 
 
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