If a country operates a freely floating exchange rate system, and suffers a balance of...
ECONOMICS
JAMB 1998
If a country operates a freely floating exchange rate system, and suffers a balance of payments deficit can be eliminated through?
- A. a rise in the external value of its currency
- B. a fall in the external value of its currency
- C. an increase in the volume of imports
- D. the consumption of more foreign goods
Correct Answer: B. a fall in the external value of its currency
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