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Economics
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Economics
Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?
A
U.S exports tend to rise, and imports tend to fall
Option A
U.S imports tend to rise, and exports tend to fall
Correct answer
C
U.S foreign exchange reserves tend to rise
Option C
D
U.S foreign exchange reserves remain constant
Option D
Correct answer: B
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