Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
a. a gradual increase in the value of its currency
b. a gradual decrease in the value of its currency
c. a "run" on its currency and a sudden appreciation
d. a "run" on its currency and a sudden devaluation
d
Economics
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A bank that improves its service may be able to __________ the rate on its loans and so __________ its net interest income
A) lower; lower B) lower; raise C) raise; lower D) raise; raise
Economics
Capital and labor only very recently have been free to move across international borders
Indicate whether the statement is true or false
Economics