Q90
If a country has a floating (flexible) exchange rate, which one of the following would lead to a fall (depreciation) in the rate of exchange for its currency into the economy?
A.
A rise in capital inflows into the economy
B.
An increase in the country's exports
C.
An increase in the country's imports
AnswerD.
A fall in the country's rate of inflation
Answer: Option C
Solution
Answer: Option C
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