For each of the following situations, assuming fi xed exchange rates, tell what will happen to the
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For each of the following situations, assuming fi xed exchange rates, tell what will happen to the balance of payments on current and capital accounts in the United States, ceteris paribus:
a. Domestic income increases.
b. Domestic interest rates fall.
c. Foreign income increases.
d. Foreign interest rates fall.
e. Domestic infl ation increases.
f. Foreign infl ation increases. Appendix
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An Introduction To Financial Markets And Institutions
ISBN: 978-0765622761
2nd Edition
Authors: Maureen Burton ,Reynold F. Nesiba ,Bruce Brown
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