Q
Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?
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A
A. U.s exports tend to rise, and imports tend to fall
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B
B. U.s imports tend to rise, and exports tend to fall
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C
C. U.s foreign exchange reserves tend to rise
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D
D. U.s foreign exchange reserves remain constant
Correct Answer:
B. B. U.s imports tend to rise, and exports tend to fall
