R

Ram Sharma • 193.84K Points
Coach Economic 

Q. Given a system of floating Exchange rates, falling income in the United States would trigger:

  • (A) An increase in the demand for imports and an increase in the demand for foreign currency
  • (B) An increase in the demand for imports and a decrease in the demand for foreign currency
  • (C) A decrease in the demand for imports and an increase in the demand for foreign currency
  • (D) A decrease in the demand for imports and a decrease in the demand for foreign currency
Correct Answer - Option(D)

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