How does a stronger dollar could enlarge the U.S. balance of trade deficit?

1. Reduce.

1. Neutral impact.

1. Increase.

5. How does a floating exchange rate (as compared to a fixed exchange rate) usually affect a country's current account deficit?

1. Reduce.

1. Neutral impact.

1. Increase.

6. Explain how low U.S. interest rates affect the tendency of U.S.-based MNCs to invest abroad?

1. Reduce.

1. Neutral impact.

1. Increase.