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    International Trade Theory and Policy
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    Exam 17: Output and the Exchange Rate in the Short Run
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    Which of the Following Would Cause the Current Account to Decrease
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Which of the Following Would Cause the Current Account to Decrease

Question 71

Question 71

Multiple Choice

Which of the following would cause the current account to decrease?


A) an increase in the nominal exchange rate,E
B) an appreciation of the home currency
C) an increase in disposable income
D) an increase in foreign prices,P Which of the following would cause the current account to decrease? A) an increase in the nominal exchange rate,E B) an appreciation of the home currency C) an increase in disposable income D) an increase in foreign prices,P   E) a decrease in domestic prices,P
E) a decrease in domestic prices,P

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