3343EconomicsMedium
Given a system of floating exchange rates falling income in the United States would trigger a (an)?
Adecrease in the demand for imports and an increase in the demand for foreign currency
Bdecrease in the demand for imports and a decrease in the demand for foreign currency
Cincrease in the demand for imports and an increase in the demand for foreign currency
Dincrease in the demand for imports and a decrease in the demand for foreign currency
Correct answer
B. decrease in the demand for imports and a decrease in the demand for foreign currency
Explanation
The correct answer is decrease in the demand for imports and a decrease in the demand for foreign currency.