Which of the following would be associated with a breakdown of exchange controls?
A) an appreciating currency
B) a depreciating currency
C) lower prices
D) higher real GDP
E) no change in fiscal policy

Question

Quizplus · Accepted Answer

A breakdown of exchange controls often leads to a depreciating currency as it may result in increased capital outflows and reduced confidence in the currency.

Which of the Following Would Be Associated with a Breakdown