Other Things Equal, Under Adjustable Pegged Exchange Rates, If the Rate

question 95

Multiple Choice

Other things equal, under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners

• A) U.S. exports tend to rise and imports tend to fall.
• B) U.S. imports tend to rise and exports tend to fall.
• C) U.S. foreign exchange reserves tend to rise.
• D) U.S. foreign exchange reserves remain constant.

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Negotiable Instrument

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