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13. Suppose the United States faces domestic inflation and a current account surplus. Should the United States revalue the dollar, one would expect the: a. Inflation to become more severe--surplus to become less severe b. Inflation to become less severe-surplus to become less severe c. Inflation to become less severe--surplus to become more severe d. Inflation to become more severe--surplus to become more severe 14. A system of floating exchange rates and high capital mobility strengthens which policy in combating a recession: a. Expansionary fiscal policy b. Expansionary monetary policy c. Contractionary fiscal policy d. Contractionary monetary policy 15. Given fixed exchange rates, assume Mexico initiates expansionary monetary and fiscal policies to combat recessi These policies will also: a. Increase both imports and exports b. Increase exports and reduce imports c. Reduce a balance-of-payments surplus d. Reduce a balance-of-payments deficit