Exchange Rates and the Balance of Payments (id: 98b8ff199)

本题目来源于试卷: Exchange Rates and the Balance of Payments，类别为 IB经济学

[单选题]
A country with a persistent current account surplus will have the foll v*(x/h6vt6m mioe1sq owing c 8m3 .4s:(jvj p bztq(wjbx 7fn9j5ikfonsequence.bjk4 w (7m5j8(snjqvffit b: 39zjpxs 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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