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.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 12SQ

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Question

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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