3/202 ay it is 1.15 Which of the following statements is/are correct? In an unstable foreign exchange market. ECS3703/001/3/2021 TO a disturbance from equilibrium pushes the exchange rate further away from equilibrium. demand curve the supply curve of foreign exchange is negatively sloped and more elastic than the (c) a flexible exchange rate system increases a balance of payments disequilibrium. [1] Only a [2] Only b [3] Only c [4] a, b and c 1.16 Which of the following statements is/are incorrect according to the absorption approach? A depreciation of a nation's currency from a position of full employment will improve the trade balance when.. domestic absorption decreases automatically domestic absorption decreases because of contractionary fiscal policy (c) government increases real income. E Only b Only c a and b a and c 1.17 Which of the following statements is/are correct? (a) Interest is recorded in the financial account. Dividends are recorded in the financial account. Net foreign profits are recorded in the current account. [1] Only a Only b Only c a and b a and c TAX