If the U.S.A. imports more than it exports, then: O a. The supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. O b.One can infer that the U.S. dollar would be under pressure to depreciate against other currencies. O. Both a. and b. are correct. O d. None of the above.
If the U.S.A. imports more than it exports, then: O a. The supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. O b.One can infer that the U.S. dollar would be under pressure to depreciate against other currencies. O. Both a. and b. are correct. O d. None of the above.
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
Problem 1ST
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