17. Explain why a surplus in the current account of the balance of payments may result in upward pressure on the exchange rate of the currency.
{"Image DocumentName": "17. Explain why a surplus in the current account of the balance of payments may result in upward pressure on the exchange rate of the currency.", "Image ImageDescription": "If a nation consistently sell more of its output to foreigners than it demands of foreign output, demand for the exporting nations currency will eventually rise and appreciate. In addition, since the surplus nation demands relatively little of foreign goods, the supply of its currency in foreign exchange markets will fall, contributing to the currency\u2019s appreciation.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}