Question: In a floating exchange rate system, a current account deficit islikely to be corrected by a) a depreciation in its exchange rate b) an appreciation

In a floating exchange rate system, a current account deficit islikely to be corrected by

a) a depreciation in its exchange rate

b) an appreciation of the home currency

c) a prolonged period of hyperinflation

d) an expansion of domestic money

e) a decrease in domestic tax rates

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