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Which of the Following Would Cause the Current Account to Decrease

Question 6

Multiple Choice

Which of the following would cause the current account to decrease?


A) an increase in the nominal exchange rate, E
B) an appreciation of the home currency
C) an increase in disposable income
D) an increase in foreign prices, P Which of the following would cause the current account to decrease? A) an increase in the nominal exchange rate, E B) an appreciation of the home currency C) an increase in disposable income D) an increase in foreign prices, P E) a decrease in domestic prices, P
E) a decrease in domestic prices, P

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