If the United States Imports More Than It Exports, Then

question 85

Multiple Choice

If the United States imports more than it exports, then

• A)the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.
• B)one can infer that the U.S. dollar would be under pressure to depreciate against other currencies.
• C)a and b
• D)None of the above

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Definitions:

Current Rate

The present value of a financial instrument or the latest interest rate on a loan or investment.