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Under a Floating Exchange Rate System

Question 11

Multiple Choice

Under a floating exchange rate system,


A) a country's net exports minus net investment from abroad must equal zero.
B) a country's net exports plus net investment from abroad must equal zero.
C) a country's net exports minus net investment from abroad plus the flow of gold into the country must equal zero.
D) a country's net exports plus net investment from abroad minus the flow of gold into the country must equal zero.

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