Which of the following will probably not result in an increase in a country's current account balance (assuming everything else remains constant) ?
A) a decrease in the country's rate of inflation
B) a decrease in the country's national income level
C) an increase in government restrictions in the form of tariffs or quotas
D) an appreciation of the country's currency
E) All of the above will result in an increased current account balance.
Correct Answer:
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