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For each of the following situations, assuming fixed exchange rates, tell what will happen to the balance of payments on current and capital accounts in the United States, ceteris paribus:

a. Domestic income increases.

b. Domestic interest rates fall.

c. Foreign income increases.

d. Foreign interest rates fall.

e. Domestic inflation increases.

f. Foreign inflation increases.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91966829

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