Question

Finance Economics

Suppose the U.S. income grows by 4%. Under the MABP, which of the following percentage changes could offset this growth? 

 

International reserves increase by 2% and foreign inflation rises by 2%

international reserves increase by 2% and foreign inflation falls by 2%

international reserves decrease by 2% and foreign inflation rises by 2%

international reserves decrease by 2% and foreign inflation falls by 2%


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