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Policymakers in a Country with a Balance of Payments Surplus

Question 51

Multiple Choice

Policymakers in a country with a balance of payments surplus may not want to see their country's currency appreciate because this would


A) hurt consumers in their country by making foreign goods more expensive.
B) hurt domestic businesses by making foreign goods cheaper in their country.
C) increase inflation in their country.
D) decrease the wealth of the country.

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