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If the United States Experiences an Increase in Foreign Exchange

Question 71

Multiple Choice

If the United States experiences an increase in foreign exchange reserves,


A) the net transfers line in the balance of payments statement will increase.
B) it will also realize a decrease in the domestic supply of dollars.
C) this will appear as a positive item in the U.S. balance of payments statement.
D) this will appear as a negative item in the U.S. balance of payments statement.

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