

MCQOPTIONS
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1. |
If there is a balance of payments deficit then in a floating exchange rate system ? |
A. | The external value of the currency would tend to fall |
B. | The external value of the currency would tend to rise |
C. | The injections from trade are greater then the withdrawals |
D. | Aggregate demand is increasing |
Answer» B. The external value of the currency would tend to rise | |