Solved

If Equilibrium Is Present in the Foreign Exchange Market and a Nation

Question 43

Multiple Choice

If equilibrium is present in the foreign exchange market and a nation is experiencing a trade surplus,


A) the nation must be experiencing a net capital inflow.
B) the nation must be experiencing a net capital outflow.
C) the nation's inflation rate must increase.
D) the nation's interest rate must increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions