Under a System of Flexible Exchange Rates, in the Long

question 60

Multiple Choice

Under a system of flexible exchange rates, in the long run, a nation's balance on current account and capital account transactions will

• A) increase continuously.
• B) decrease continuously.
• C) tend to net out to zero, indicating a balance between the debits and credits.
• D) tend to increase if the nation is running a balance of trade surplus and decrease if it is running a balance of trade deficit.

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Definitions:

Lateral Hemispheres

A term related to the outer sections of an organ or structure, often used in reference to the brain's cerebral hemispheres on either side.

Vermis

The central part of the cerebellum, connecting the two hemispheres and involved in coordinating posture and locomotion.

Brainstem

The central trunk of the brain, consisting of the medulla oblongata, pons, and midbrain, controlling vital life functions such as breathing and heart rate.

Cardiac Center

A region of the brainstem responsible for regulating the rate and force of the heartbeat.