πŸ“Š International Economics
Q. If there were 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 than the withdrawals
  • (D) Aggregate demand is increasing
πŸ’¬ Discuss
βœ… Correct Answer: (A) The external value of the currency would tend to fall

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