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Question 1 Multiple possible answer A rise in import spending would, other things being equal, - reduce an existing current account deficit - decrease the
Question 1
Multiple possible answer
A rise in import spending would, other things being equal,
- reduce an existing current account deficit
- decrease the capital and financial accounts - increase the capital and financial accounts
- increase an existing Balance of trade deficit.
Question 2
One possible answer
Which of the following are limits of a weak home currency solution for a given country?
- All the proposals are correct
- Transactions with MNCs subsidiaries
- Difficulties to solve simultaneously all deficits with foreign countries -The competition from foreign companies
-The J-curve effect
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