6 Which of the following will probably NOT result in an improved current account balance (assuming everything else remains constant)? a. a decrease in a country's national income level b. a decrease in a country's rate of inflation c. an increase in government restrictions in the form of tariffs or quotas d. an appreciation of a country's currency 2 points

QUESTION 7 Under a managed float exchange rate system, the Fed may attempt to stimulate the U.S. economy by ____ the dollar. Such an adjustment in the dollar's value should ____ the U.S. demand for products produced by major foreign countries. a. weakening; increase b. weakening; decrease c. strengthening; decrease d. strengthening; increase 2 points

QUESTION 8 Which of the following is an example of direct intervention in foreign exchange markets? a. increasing the inflation rate b. imposing barriers on international trade c. lowering interest rates d. exchanging dollars for foreign currency