If a Country Has a Flexible Exchange Rate System and a Deficit

question 27

Multiple Choice

If a country has a flexible exchange rate system and a deficit on current account

• A) the balance of payments must be negative.
• B) The balance of payments must be positive.
• C) The balance on capital account must be negative.
• D) The balance on capital account must be positive.

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Definitions:

Extreme Disorders

Severe mental health conditions that significantly impair an individual's functioning in daily life, often requiring intensive and specialized treatment.

Psychological Help

The assistance provided by mental health professionals to individuals dealing with emotional, psychological, or behavioral issues.

Economic Trends

Patterns or tendencies in the economy that indicate the direction of the overall economic activities and conditions.

Psychiatry

A branch of medicine focused on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.