Because the United States Has a Flexible Exchange Rate System

question 25

Multiple Choice

Because the United States has a flexible exchange rate system, one would expect that

• A) U.S. exports and imports would be in balance.
• B) the U.S. current account would be in balance.
• C) U.S. exports to China would be in balance with U.S. imports from China.
• D) all of the above are true.
• E) none of the above are true.

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Definitions:

Goods with Services

Transactions that involve a combination of physical products and the provision of services as part of the offering.

Sales Contract

A written or spoken agreement between a buyer and seller regarding the sale of goods, specifying terms and conditions.

Unconscionable

Something shockingly unfair, unjust, or unreasonable, often applied in legal contexts to describe contracts or actions.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify such transactions across states.