Under Managed Floating Exchange Rates,if the Rate of Inflation in the United

question 46

Multiple Choice

Under managed floating exchange rates,if the rate of inflation in the United States is less than the rate of inflation of its trading partners,the dollar will likely:

• A) Appreciate against foreign currencies
• B) Depreciate against foreign currencies
• C) Be officially revalued by the government
• D) Be officially devalued by the government