Which of the following is NOT a deficit item on the international accounts balance sheet for a country?

Suppose that an early frost damages the Florida orange crop. As a result, the price of California oranges increases. Ceteris paribus, which one of the following statements best explains this situation?

A) The supply of Florida oranges decreased, causing the supply of California oranges to increase, which resulted in a higher price. B) The supply of Florida oranges decreased, causing the supply of California oranges to decrease, which resulted in a higher price. C) The supply of Florida oranges decreased, causing their price to increase, and thus causing the demand for California oranges to increase. D) The demand for Florida oranges fell because of the freeze, and this led to a higher demand for California oranges.

For a major country with extensive capital flows, what is the effect of a decrease in interest rates?

a. a currency depreciation and increased net exports b. a currency depreciation and reduced net exports c. a currency appreciation and increased net exports d. a currency appreciation and reduced net exports