Which One of the Following Statements Is the Most Accurate

question 31

Multiple Choice

Which one of the following statements is the most accurate?

• A) An increase in the real exchange rate and an increase in disposable income improve the current account.
• B) A decrease in the real exchange rate and a decrease in disposable income improve the current account.
• C) A decrease in the real exchange rate and a increase in disposable income improve the current account.
• D) An increase in the real exchange rate and a decrease in disposable income improve the current account.
• E) An increase in the real exchange rate and a decrease in disposable income lowers the current account.

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