Under a system of flexible exchange rates,an increase in the international value of a nation's currency will:
A)cause a surplus of its currency
B)contribute to disequilibrium in its balance of payments
C)cause interest rates in that nation to rise
D)cause its exports to rise
E)cause its imports to rise

Question

Quizplus · Accepted Answer

An increase in the international value of a nation's currency makes foreign goods cheaper for its residents, thus encouraging imports.

Under a System of Flexible Exchange Rates,an Increase in the International