Under a Fixed Exchange-Rate System and High Capital Mobility,a Contraction

question 69

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,a contraction in the domestic money supply leads to a:

• A) Trade-account deficit and a capital-account surplus
• B) Trade-account deficit and a capital-account deficit
• C) Trade-account surplus and a capital-account surplus
• D) Trade-account surplus and a capital-account deficit

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Definitions:

Causative Agent

A factor, such as a microorganism or chemical substance, that is responsible for causing a disease or condition.

Disease X

A placeholder name used by the World Health Organization (WHO) to describe a hypothetical, unknown pathogen that could cause a future epidemic.

Physical Inactivity

A lifestyle characterized by insufficient physical activity, which can lead to health problems such as obesity and chronic diseases.

Colon Cancer

A type of cancer that begins in the colon (the longest part of the large intestine), characterized by the growth of tumors in the colon's inner lining.