If the USHas a Trade Deficit and the Nominal Exchange Rate Depreciates,then

question 35

Multiple Choice

If the U.S.has a trade deficit and the nominal exchange rate depreciates,then other things the same

• A)the trade deficit rises and net capital outflow rises.
• B)the trade deficit rises and net capital outflow falls.
• C)the trade deficit falls and net capital outflows rise.
• D)the trade deficit falls and net capital outflows fall.

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Definitions:

Society of Worldwide Interbank Financial Telecommunications

An international messaging network that financial institutions use for securely transmitting information and instructions related to financial transactions.

International Payment Transfers

Financial transactions that involve the sending of money across international borders.

Global Telecommunications

Worldwide infrastructure and services for the exchange of information through electronic networks.

Commercial Letter

A formal document used in business transactions that typically contains specific information and terms regarding a deal or agreement.