Multiple Choice
If a country's budget deficit increases, then in the foreign exchange market,
A) the supply of its currency shifts right, so the exchange rate falls.
B) the demand for its currency shifts right, so the exchange rate rises.
C) the supply of its currency shifts left, so the exchange rate rises.
D) the demand for its currency shifts left.so the exchange rate falls.
Correct Answer:
Verified
Correct Answer:
Verified
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