If There Is a Shift of International Trade Away from a Country's

question 21

Multiple Choice

If there is a shift of international trade away from a country's products, we can expect that the FE and IS curves will shift to the _____, the overall payments balance will move toward _____, and the domestic currency will _____.

• A)right; surplus; appreciate
• B)right; deficit; appreciate
• C)left; surplus; depreciate
• D)left; deficit; depreciate

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