The decrease in NX would mitigate the appreciation, ceteris paribus It would attract foreign investment in the domestic economy due to lower entry costs, ceteris QUESTION 9 When the domestic current account moves toward surplus, select all of the following that might result: O Assuming no change in foreign reserves, the domestic interest rate rises The home price of goods increases, ceteris paribus Demand for DC increases Domestic output increases QUESTION 10 Select all that are true regarding trade and fx: Currency swaps can be used to buy foreign goods now and in the future exporters use currency forwards and futures to hedge supply chain risk