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If a Country's Budget Deficit Increases,then in the Market for Foreign-Currency

Question 107

Multiple Choice

If a country's budget deficit increases,then in the market for foreign-currency exchange,


A) the supply of its currency shifts right,so the exchange rate falls.
B) the demand for its currency shifts right,so the exchange rate rises.
C) the supply of its currency shifts left,so the exchange rate rises.
D) the demand for its currency shifts left.so the exchange rate falls.

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