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Under a System of Flexible Exchange Rates,a Nation Which Tightens

Question 19

Multiple Choice

Under a system of flexible exchange rates,a nation which tightens its monetary policy would be likely to experience


A) a loss in international reserves.
B) a fall in the value of its currency.
C) short-term capital outflows.
D) an appreciation of its currency.
E) a surplus in its current account.

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