The More Elastic Is a Nation's Demand and Supply of Foreign

Multiple Choice

The more elastic is a nation's demand and supply of foreign exchange the:

A) larger is the devaluation or depreciation required to correct a deficit of a given size in the nation's balance of payments
B) smaller is the devaluation or depreciation required to correct a deficit of a given size in the nation's balance of payments
C) less feasible is a flexible exchange rate system
D) less feasible is devaluation as a policy to correct a deficit in the nation's balance of payments