Which of the following would cause the current account to decrease?
A) an increase in the nominal exchange rate, E
B) an appreciation of the home currency
C) an increase in disposable income
D) an increase in foreign prices, P
E) a decrease in domestic prices, P

Question

Which of the following would cause the current account to decrease?
A) an increase in the nominal exchange rate, E 
B) an appreciation of the home currency 
C) an increase in disposable income 
D) an increase in foreign prices, P 
E) a decrease in domestic prices, P

Quizplus · Accepted Answer

The Answer is C

Which of the Following Would Cause the Current Account to Decrease