Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall B. U.S. imports tend to rise and exports tend to fall C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Under adjustable pegged exchange rates, if the rate of inflation in the United States  exceeds the rate of inflation of its trading partners:
A. U.S. exports tend to rise and imports tend to fall
B. U.S. imports tend to rise and exports tend to fall
C. U.S. foreign exchange reserves tend to rise
D. U.S. foreign exchange reserves remain constant
by

1 Answer

Answer :

B. U.S. imports tend to rise and exports tend to fall
by

Related questions

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Last Answer : How globalization will help to increase foreign exchange reserves?

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