Which of the following would increase the current account of Country X? Country Y is Country X's sole trading partner.
Which of the following would increase the current account of Country X? Country Y is Country X's sole trading partner.
A.Inflation increases in countries X and Y by comparable amounts.
B.Country X's and Country Y's currencies depreciate by the same amount.
C.Country X imposes tariffs on imports from Country Y, and Country Y retaliates by imposing an identical tax on X's exports.
D.The central banks of Country X and Country Y reduce the money supply to increase interest rates.
E.Country X imposes a quota on imports, and Country Y retaliates by imposing an identical quota on X's exports.
正确答案:The central banks of Country X and Country Y reduce the money supply to increase interest rates.