The Nation of Mainland Recently Reported That Its Imports for the Previous

Multiple Choice

The nation of Mainland recently reported that its imports for the previous year were $7 billion greater than its exports. During the same period, the country reported a favorable balance of payments. This information suggests

A) Mainland has misstated information in its report. The nation must have had a balance of payments deficit since more money flowed out of Redland for imports than flowed into the country for its exports.
B) Mainland's gold and other precious metal reserves increased in value.
C) money inflows from tourism, foreign aid, foreign investment, and other sources more than offset Mainland's trade deficit.
D) Mainland devalued their currency to obtain a more favorable exchange rate.