In a System of Flexible Exchange Rates,lower Inflation Abroad Would

question 34

Multiple Choice

In a system of flexible exchange rates,lower inflation abroad would induce

• A)a rise in the U.S.exchange rate.
• B)a fall in the U.S.rate of exchange.
• C)a balance of payments deficit for the United States.
• D)no change in U.S.exchange rates.

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