Given the following information which one of the following choices has only correct statements:
I. If home inflation rate is lower than foreign inflation, exports of home country are likely to increase
II. Higher foreign growth is likely to increase home country exports and affect current account balance positively
III. If the home market productivity is slower than foreign market productivity, home country exports increase and affect current account balance positively.
IV. If home country savings decline, current account deficit declines
V. If home country investments increase, current account balance deteriorates
A. I, II, III
B. I, II, IV
C. II, III, IV
D. I, IV, V
E. I, II, V
Given the following information which one of the following choices has only correct statements:
I. If home inflation rate is lower than foreign inflation, exports of home country are likely to increase
II. Higher foreign growth is likely to increase home country exports and affect current account balance positively
III. If the home market productivity is slower than foreign market productivity, home country exports increase and affect current account balance positively.
IV. If home country savings decline, current account deficit declines
V. If home country investments increase, current account balance deteriorates
A. I, II, III
B. I, II, IV
C. II, III, IV
D. I, IV, V
E. I, II, V
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