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When There Is Political Instability in Another Country, the United

Question 256

Multiple Choice

When there is political instability in another country, the United States can expect


A) an increase in the financial account balance due to an increase in the current account.
B) an increase in the financial account balance due to the movement of assets to the U.S.
C) a decrease in the balance of payments due to a decrease in official reserve transactions.
D) a decrease in the balance of payments due to a decrease in the demand for goods and services.

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