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If a country operates a freely floating exchange rate system, and suffers a balance of…

If a country operates a freely floating exchange rate system, and suffers a balance of payments deficit can be eliminated through?
  • A.
    a rise in the external value of its currency
  • B.
    a fall in the external value of its currency
  • C.
    an increase in the volume of imports
  • D.
    the consumption of more foreign goods
Correct Answer: Option B
Explanation