3389EconomicsMedium
Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners?
AU.S imports tend to rise, and exports tend to fall
BU.S foreign exchange reserves remain constant
CU.S foreign exchange reserves tend to rise
DU.S exports tend to rise, and imports tend to fall
Correct answer
A. U.S imports tend to rise, and exports tend to fall
Explanation
The correct answer is U.S imports tend to rise, and exports tend to fall.