Answered: If the U.S.A. imports more than it… | bartleby

International Financial Management

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter4: Exchange Rate Determination

Section: Chapter Questions

Problem 22QA

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If the U.S.A. imports more than it exports, then:
O a. The supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.
Ob. One can infer that the U.S. dollar would be under pressure to depreciate against other currencies.
O. Both a. and b. are correct.
O d. None of the above.

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