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    Microeconomics Study Set 13
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    Exam 27: The Balance of Payments, Exchange Rates, and Trade Deficits
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    Under a System of Flexible Exchange Rates, an Increase in the International
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Under a System of Flexible Exchange Rates, an Increase in the International

Question 2

Question 2

Multiple Choice

Under a system of flexible exchange rates, an increase in the international value of a nation's currency will


A) cause an international surplus of its currency.
B) contribute to disequilibrium in its balance of payments.
C) cause gold to flow into that country.
D) cause its imports to rise.

Correct Answer:

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