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Question If we assume that a Nations imports are positively correlated with incomes then which of the follow is true? A. In a booming economy the balance on current account is likely to worsen B. The fiscal policies of that nation will be less effective (compared to a closed economy) C. An increase in incomes (all things being equal) is likely to have a negative impact on exchange rates (assuming it floats) D. All of the above

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Question

If we assume that a Nations imports are positively correlated with incomes then

which of the follow is true? A. In a booming economy the balance on current account is likely to worsen B. The fiscal policies of that nation will be less effective (compared to a closed economy) C. An increase in incomes (all things being equal) is likely to have a negative impact on exchange rates (assuming it floats) D. All of the above

 
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