Given a system of floating exchange rates rising inc... - Solved MCQs & Answer

3075EconomicsMedium

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

Adecrease in the demand for imports and a decrease in the demand for foreign currency

Bincrease in the demand for imports and decrease in the demand for foreign currency

Cdecrease in the demand for imports and an increase in the demand for foreign currency

Dincreasing in the demand for imports and an increasing in the demand for foreign currency

Correct answer

D. increasing in the demand for imports and an increasing in the demand for foreign currency

Explanation

The correct answer is increasing in the demand for imports and an increasing in the demand for foreign currency.

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