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The US dollar has a free-floating exchange rate. When the dollar has fallen considerably in relation to other currencies, the A. Fall in the dollar’s value cannot be expected to have any effect on the US trade balance. B. Cheaper dollar helps US exporters of domestically produced goods. C. Trade account in the US balance of payments is neither in a deficit nor in a surplus because of the floating exchange rates. D. Capital account in the US balance of payments is neither in a deficit nor in a surplus because of the floating exchange rates. |