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In Theory, What Should the Rising U

Question 3

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In theory, what should the rising U.S. current account deficit do the value of the dollar?


A) It should decrease the supply of dollars and increase the foreign exchange rate of the dollar.
B) It should increase the supply of dollars, and decrease the foreign exchange rate of dollars.
C) It should decrease the supply of dollars and decrease the foreign exchange rate of the dollar.
D) If should increase the supply of dollars and increase the foreign exchange rate of dollars.

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