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QUESTION

If a country experiences high inflation relative to the u.s., its exports to the u.s. should ________, its imports should ________, and there is ________ pressure on its currency's equilibrium value.

If a country experiences high inflation relative to the u.s., its exports to the u.s. should ________, its imports should ________, and there is ________ pressure on its currency's equilibrium value.

a. decrease; decrease; upward

b. decrease; increase; upward

c. decrease; increase; downward

d. increase; decrease; upward

e. increase; decrease; downward

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