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Which of the Following Would Cause the Current Account to Decrease

Question 27

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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