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10. Suppose the United States faces domestic recession and a current account deficit. Should the United States devalue the dollar, one would expect the: a. Recession to become less severe-deficit to become less severe b. Recession to become more severe-deficit to become less severe c. Recession to become less severe-deficit to become more severe d. Recession to become more severe-deficit to become more severe 11. Suppose Mexico and the United States were the only two countries in the world. There exists an excess supply of pesos on the foreign exchange market. This suggests that: a. Mexico's current account is in surplus b. Mexico's current account is in deficit c. The U.S. current account is in deficit d. The U.S. current account is in equilibrium 12. In a country's balance of payments, which of the following transactions are debits? a. Domestic bank balances owned by foreigners are decreased b. Foreign bank balances owned by domestic residents are decreased c. Assets owned by domestic residents are sold to nonresidents d. Securities are sold by domestic residents to nonresidents