An Increase in the Inflation Rate of One Country Relative

question 42

Multiple Choice

An increase in the inflation rate of one country relative to another country will probably cause

• A) an increase in exports for the inflating country.
• B) a balance of trade deficit for the inflating country.
• C) a current account surplus for the inflating country.
• D) an increase in the amount of official reserves held by the inflating country's central bank.

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Definitions:

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