A capital account surplus might be expected to cause a current account deficit because the associated
| A. | capital outflow would cause the nation's currency to depreciate, contributing to a trade deficit |
| B. | capital inflow would cause the nation's currency to depreciate, contributing to a trade deficit |
| C. | capital inflow would cause the nation's currency to appreciate, contributing to a trade deficit |
| D. | capital outflow would cause the nation's currency to appreciate, contributing to a trade deficit |
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Option: C Explanation : Click on Discuss to view users comments. |
Which exchange rate system does not require monetary reserves for official exchange rate intervention
| A. | floating exchange rates |
| B. | pegged exchange rates |
| C. | managed floating exchange rates |
| D. | dual exchange rates |
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Option: A Explanation : Click on Discuss to view users comments. |
Historically, countries at early stages of rapid economic development have tended to experience
| A. | trade deficits and an excess of investment over domestic saving |
| B. | trade surpluses and an excess of investment over domestic saving |
| C. | trade deficits and an excess of domestic saving over investment |
| D. | trade surpluses and an excess of domestic saving over investment |
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Option: A Explanation : Click on Discuss to view users comments. |
