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Which one of the following is likely to lead to persistent balance of payments deficits under fixed ...

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Which one of the following is likely to lead to persistent balance of payments deficits under fixed ...

Which one of the following is likely to lead to persistent balance of payments deficits under fixed exchange rates?

▸ A lower rate of growth at home than abroad

▸ The long-term development of import substitutes at home

▸ A growth in the country's monopoly power in the export market

▸ A lower income elasticity of demand for the country's exports than for its imports

▸ A higher rate of inflation abroad than in the domestic economy

Textbook

Essential Economics for Business

Edition: 5^th

Authors: Sloman, Jones

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gorgeous Author

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Correct

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