The Monetary Approach to Balance-Of-Payments Adjustments Suggests That All Payments

question 61

Multiple Choice

The monetary approach to balance-of-payments adjustments suggests that all payments deficits are the result of:

• A) Too high interest rates in the home country
• B) Too low interest rates in the home country
• C) Excess money supply over money demand in the home country
• D) Excess money demand over money supply in the home country

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