Suppose Japan Increases Its Imports from Sweden,leading to a Rise

question 36

Multiple Choice

Suppose Japan increases its imports from Sweden,leading to a rise in Sweden's exports and income level.With a higher income level,Sweden imports more goods from Japan.Thus a change in imports in Japan results in a feedback effect on its exports.This process is best referred to as the:

• A) Monetary approach to balance-of-payments adjustment
• B) Discretionary income adjustment process
• C) Foreign repercussion effect
• D) Price-specie flow mechanism

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