What will happen to balance of payments on current accounts

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Reference no: EM131210825

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.

Reference no: EM131210825

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