QUESTION 45 Which one of the following would cause an appreciation of the exchange rate (in each case assume that nothing else changes)? a. a reduction in the current account deficit (and no change in the other parts of the balance of payments) O b. speculation that the rate of interest will fall O c. an increase in domestic incomes O d. a reduction in the rate of interest

QUESTION 45 Which one of the following would cause an appreciation of the exchange rate (in each case assume that nothing else changes)? a. a reduction in the current account deficit (and no change in the other parts of the balance of payments) O b. speculation that the rate of interest will fall O c. an increase in domestic incomes O d. a reduction in the rate of interest

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 4CQQ

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