Given a system of floating exchange rates falling income in the United States would trigger a (an) ?

Question

Given a system of floating exchange rates falling income in the United States would trigger a (an) ?

Answer 1

A. increase in the demand for imports and an increase in the demand for foreign currency
B. increase in the demand for imports and a decrease in the demand for foreign currency
C. decrease in the demand for imports and an increase in the demand for foreign currency
D. decrease in the demand for imports and a decrease in the demand for foreign currency

Correct Answer: decrease in the demand for imports and a decrease in the demand for foreign currency ✔

Last Updated: June 11, 2019