Which of the Following Is True of a Country That

question 17

Multiple Choice

Which of the following is true of a country that is running a deficit on a balance-of-payments current account?

• A)It is importing more goods and services than it is exporting.
• B)It will result in steady appreciation of the country's currency.
• C)It will lead to very low interest rates in the country.
• D)It will lead to a shortage of the country's currency in the foreign exchange market.