In a freely floating exchange rate system, if the capital account surp

In a freely floating exchange rate system, if the capital account surplus for the U.S. rises, what will most likely happen to the real value of the dollar?

A) It will decline.
B) It will rise.
C) There is no impact on the dollar.
D) The IMF will step in to adjust rising exchange rates.

 

 

ANSWER

Answer: B

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