Assuming that the value effect dominates, the current account will increase if
A) the real exchange rate decreases.
B) the real exchange rate increases.
C) disposable income increases.
D) exports fall.
E) domestic prices fall.

Question

Quizplus · Accepted Answer

The Answer of Assuming that the value effect dominates, the current account will increase if
A) the real exchange rate decreases.
B) the real exchange rate increases.
C) disposable income increases.
D) exports fall.
E) domestic prices fall.

Assuming That the Value Effect Dominates, the Current Account Will