Under managed floating exchange rates if the rate of inflation in the – McqOptions

MCQOPTIONS

1.	Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?
A.	appreciates against foreign currencies
B.	depreciates against foreign currencies
C.	be officially revalued by the government
D.	be officially devalued by the government
Answer» B. depreciates against foreign currencies

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