Under a System of Freely Flexible (Floating)exchange Rates, a U

question 133

Multiple Choice

Under a system of freely flexible (floating) exchange rates, a U.S. trade deficit with Mexico will tend to cause

• A)the U.S. government to ration pesos to U.S. importers.
• B)a flow of gold from the United States to Mexico.
• C)an increase in the peso price of dollars.
• D)an increase in the dollar price of pesos.

---

Definitions:

Chuckling

A soft, low-key form of laughter, often expressing amusement in a quiet or restrained manner.

Positive Cries

Emotional expressions through crying that are not rooted in distress but can signify joy, relief, or a deep emotional release.

Cooing

Soft, gentle sounds made by babies in the early stages of vocal development.

Babbling

A stage in child language acquisition where infants produce sounds before they learn to speak actual words, often combining consonants and vowels like "baba" or "gaga".