IB Economics Unit 4.3: Global Economy - Exchange Rates & Balance of Payments (id

本题目来源于试卷: IB Economics Unit 4.3: Global Economy - Exchange Rates & Balance of Payments，类别为 IB经济学

[单选题]
A country with a persistent currenpv; (eng4 k)jst account surplusz6x *mcy)p d.uqn;tt2 will have the following consequences.x*cn6pt m u 2tzyqd;) except

A. Depreciation of currency
B. Low domestic investment
C. Low domestic consumption
D. Reduced export competitiveness


参考答案:  A


本题详细解析:

A

$\underset{‾}{\text{Explanation}}$:
If a country has a persistent current account surplus, its exports are greater than its imports. Thus, the demand for currency exceeds its supply, leading to its appreciation.

These answer options indicate the consequences of a persistent current account surplus.

• Option B: A persistent current account surplus implies a financial account deficit, implying that the currency is leaving the country and hence low domestic investment.
• Option C: A persistent current account surplus implies higher exports and hence a low level of domestic consumption.
• Option D: A current account surplus leads to an appreciation of the currency, making the exports costly and reducing competitiveness.

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