Multiple Choice
Under fixed exchange rates, balance of payments deficits will not be caused by
A) the income elasticity of demand for imports being higher than the income elasticity of demand for exports.
B) inflation in this country being higher than that in the economies with which it trades.
C) a deterioration in the terms of trade.
D) faster growth.
Correct Answer:

Verified
Correct Answer:
Verified
Q80: The government believes that the current exchange
Q81: What are the two major ways in
Q82: The exchange rate index is a weighted
Q83: The record of a country's transfers of
Q84: The system under which the government allows
Q86: Under fixed exchange rate regimes governments were
Q87: A UK firm builds a factory in
Q88: Match the List to each of the
Q89: Match the List to each of the
Q90: An exchange rate regime is the way