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If There Is a Shift of International Trade Away from a Country's

Question 21

Multiple Choice

If there is a shift of international trade away from a country's products, we can expect that the FE and IS curves will shift to the _____, the overall payments balance will move toward _____, and the domestic currency will _____.


A) right; surplus; appreciate
B) right; deficit; appreciate
C) left; surplus; depreciate
D) left; deficit; depreciate

Correct Answer:

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