Multiple Choice
Under a flexible exchange rate system,what can we conclude if a nation is running a deficit in its balance of merchandise trade?
A) The nation must be running a surplus in the nonmerchandise components of its transactions with other countries.
B) The nation's currency will depreciate.
C) The nation must be running a deficit in the nonmerchandise components of its transactions with other countries.
D) The nation's currency will appreciate.
Correct Answer:
Verified
Correct Answer:
Verified
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