Refer to the information provided in Figure 16.2 below to answer the question(s) that follow. Figure 16.2Refer to Figure 16.2. The ________ amount of cars is 25.

How does a firm raise external funds through direct finance?

What will be an ideal response?

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