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Basic Question 3 of 6
Which condition, via exchange rate adjustments, will help a country restore its balanced current account?
B. High sensitivities of import and export prices to changes in the exchange rate.
C. Low price elasticities of import and export demand.
A. A narrow gap between exports and imports.
B. High sensitivities of import and export prices to changes in the exchange rate.
C. Low price elasticities of import and export demand.
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Learning Outcome Statements
explain how flows in the balance of payment accounts affect currency exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.