• Exchange rates
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  • A country experiences a decline in its exports and its imports. Which of the following is most likely to have caused these changes?
    A decrease in the extent to which the country specialises
  • Which change will cause the exchange rate to appreciate?
    An increase in domestic interest rates
  • A country is faced with a surplus in the current account of its balance of payments and unemployment. Which of the following would reduce both of these problems?
    A decrease in its interest rates
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