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Following a report of additional inwesting RISK in country A (the domesse curtency. FA), the balance of payments re-equilibration oceurs in which order? The DC

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Following a report of additional inwesting RISK in country A (the domesse curtency. FA), the balance of payments re-equilibration oceurs in which order? The DC depreclates from the current account The foreign interest in X decreases Foreign agents inctedes their interest in exports (X) The relative price (RP) of exports ( X ) inreases (i.e. it takes more FC to buy the DC to trade in the same amount of X ) The DC depreciates trom the financial account (DI or Fl) Foreign agente docrease their demand of the domestic currency (DC) in the F market to trade (X) The relative price (RP) of exports (X) dereases (L.e. it takes less FC to buy the DC to trade in the same amount of X ) Foreign agents increase their domand for the domeste curroncy (DC) in the FX market to buy export (X) The DC appreciates (curront account)

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