A Country Running a Current Account Surplus Over Many Years

question 70

Multiple Choice

A country running a current account surplus over many years should see its exchange rate:

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

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Definitions:

Production Facility

A location equipped with machinery and tools used in the manufacturing or production of goods.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business, such as raw materials and direct labor.

Profitable Use

The effective and efficient utilization of resources (assets, equipment, personnel) that leads to generating profit or achieving financially beneficial outcomes.

Intermediate Product

An intermediate product is a semi-finished good used as input in the production of another final or finished product.