McqMate
| Q. |
If there were a balance of payments deficit then in a floating exchange rate system: |
| A. | The external value of the currency would tend to fall |
| B. | The external value of the currency would tend to rise |
| C. | The injections from trade are greater than the withdrawals |
| D. | Aggregate demand is increasing |
| Answer» A. The external value of the currency would tend to fall | |
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