MCQOPTIONS
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| 1. |
If a country experiences high inflation relative to the UK, its exports to the UK should _______________, its imports should ___________, and there is __________ pressure on its currency's equilibrium value. |
| A. | decrease; increase; upward |
| B. | decrease; decrease; upward |
| C. | increase; decrease; downward |
| D. | decrease; increase; downward |
| Answer» D. decrease; increase; downward | |