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
C
Economics
You might also like to view...
A relatively steep LM curve implies that wide fluctuations in the goods sector cause
A) wide fluctuations in real output. B) wide fluctuations in the price level. C) wide fluctuations in the interest rate. D) crowding out of private investment.
Economics
A favorable balance of trade occurs when:
A. exports equal imports. B. the balance of payments balances. C. the current and capital account in the BOP are equal. D. the value of the exports of goods exceeds the value of the imports of goods.
Economics