A Country Running a Current Account Deficit Over a Long

question 77

Multiple Choice

A country running a current account deficit over a long time should see its exchange rate:

• A)Hold steady
• B)Appreciate
• C)Depreciate
• D)The rate can rise, fall, or hold steady; the current account and the exchange rate are not linked

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Definitions:

Misinterpret

To understand or interpret something incorrectly, leading to a misunderstanding of the intended meaning.

Rightsizing

The process of adjusting the size of a company's workforce to its needs, aiming for optimal efficiency and productivity.

Layoff

The act of temporarily or permanently terminating employees, typically due to economic downturns or company restructurings.

Paradigm Shift

A fundamental change in approach or underlying assumptions in any field or discipline.