Countries experiencing a relatively lower rise in prices will generally see an appreciation in the value of their currency. An increase in the rate of a country's charges for loans results in apprecia- tion of its currency on the interna- tional market. This results in loss of income and usually lower interest rates, leading to a depreciation in the value of a nation's currency. A country that is perceived as being stable is more attractive to foreign investors, resulting in an apprecia- tion of the stable country's currency. a. b. C. d. political stability interest rate inflation rate recession VI A

National Saving - Investment = X - IM A country whose National Saving is greater than its Investment will experience a Trade deficit (IM > X) Balanced trade (IM – X) = 0 O Trade surplus (X > IM)

Urgent

A country has been experiencing a persistent deficit in its current account balance due to high levels of imports compared to exports, along with significant outflows of income payments and transfers. To address this issue, the government is considering implementing a range of policies, including devaluation of the currency, imposition of tariffs, and promotion of export industries. The goal is to correct the balance of payments imbalance and improve the country's international financial position. The question is: In this scenario, the primary objective of the government's policies is to: A) Increase the country's reliance on imports B) Decrease foreign investment in the country C) Correct the balance of payments deficit D) Eliminate all forms of international trade