Multiple Choice
If the United States has a current account deficit with England of $1 million,and the Bank of England sells $1 million worth of pounds in the foreign exchange market,then England ________ $1 million of international reserves and its monetary base ________ by $1 million.
A) gains;rises
B) gains;falls
C) loses;rises
D) loses;falls
Correct Answer:
Verified
Correct Answer:
Verified
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