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The Monetary Approach to Balance-Of-Payments Adjustments Suggests That All Payments

Question 8

Multiple Choice
The monetary approach to balance-of-payments adjustments suggests that all payments surpluses are the result of:
A) Too high interest rates in the home country
B) Too low interest rates in the home country
C) Excess money supply over money demand in the home country
D) Excess money demand over money supply in the home country

The monetary approach to balance-of-payments adjustments suggests that all payments surpluses are the result of:


A) Too high interest rates in the home country
B) Too low interest rates in the home country
C) Excess money supply over money demand in the home country
D) Excess money demand over money supply in the home country

Correct Answer:

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