Which of the following would increase the current account of Country X? Country Y is Country X's

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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.

参考答案:

答案：The central banks of Country X and Country Y reduce the money supply to increase interest rates.