When there is political instability in another country, the U.S. can expect
A) an increase in the balance of payments due to an increase in the current account.
B) an increase in the balance of payments due to the movement of assets to the U.S.
C) a decrease in the balance of payments due to a decrease in special drawing rights.
D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
Correct Answer:
Verified
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
Q24: The current account and the capital account
A)
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: Q30: ![]()
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