If a Country Experiences High Inflation Relative to the United

question 50

Multiple Choice

If a country experiences high inflation relative to the United States, its exports to the United States should ____, its imports should ____, and there is ____ pressure on its currency's equilibrium value.

• A) decrease; increase; upward
• B) decrease; decrease; upward
• C) increase; decrease; downward
• D) decrease; increase; downward
• E) increase; decrease; upward

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Definitions:

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