Q.

Given a system of floating Exchange rates, falling income in the United States would trigger:

A. An increase in the demand for imports and an increase in the demand for foreign currency
B. An increase in the demand for imports and a decrease in the demand for foreign currency
C. A decrease in the demand for imports and an increase in the demand for foreign currency
D. A decrease in the demand for imports and a decrease in the demand for foreign currency
Answer» D. A decrease in the demand for imports and a decrease in the demand for foreign currency
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