An increase in a country's rate of inflation is apt to
A) reduce its imports and improve its trade balance.
B) lower its nominal rate of interest and encourage an inflow of capital.
C) worsen its balance of trade and balance of payments.
D) decrease demand for the country's currency.
Correct Answer:
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Q22: The major factor affecting a nation's balance
Q23: Which of the following transactions leads to
Q24: For the United States, suppose the value
Q25: A nation's balance of payments can be
Q26: If the current account is in deficit,
Q28: Current account transactions are payments that are
Q29: All of the following would be considered
Q30: The balance of payments is
A) a summary
Q31: The U.S. balance of payments status may
Q32: Unilateral transfers are
A) transactions that take place
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