The current account and the capital account
A) determine the balance of trade.
B) determine the equilibrium foreign exchange rate.
C) are more-or-less mirror images of one another.
D) together add up to the total amount of exports from a country.
Correct Answer:
Verified
Q19: A floating exchange rate
A) will change along
Q20: When a country intervenes in foreign currency
Q21: If one country has a trade surplus,
A)
Q22: As real interest rates rise in Mexico
Q23: If labor productivity improves in India relative
Q25: When there is political instability in another
Q26: Which of the following is FALSE?
A) Countries
Q27: Exchange rates that are allowed to fluctuate
Q28: If the foreign exchange rate is 70
Q29: 
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