If a Real Value of a Nation's Freely Floating Currency

question 13

Multiple Choice

If a real value of a nation's freely floating currency increases,and the nation's current account is initially zero,its capital account will most likely be

• A)in deficit
• B)in surplus
• C)adjusted for the rate of inflation
• D)decreased by the amount of increase in the current account

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Definitions:

Tolerance

The body's reduced response to a substance (like a drug or alcohol) due to repeated exposure, requiring larger amounts to achieve the same effect.

Hemorrhagic Stroke

A type of stroke caused by a ruptured blood vessel leading to bleeding inside or around the brain.

Middle Age

A period in human life, typically between the ages of about 45 and 65, characterized by noticeable changes in physical health, personal development, and social role.

Alzheimer's Disease

A progressive neurological disorder that causes the brain to shrink and brain cells to die, resulting in severe memory loss and cognitive decline.