In what circumstances will an appreciation of a floating exchange rate lead to the greatest deterioration in the current account of the balance of payments?
- Aprice elasticity of demand for imports: 0.4; price elasticity of demand for exports: 0.4
- Bprice elasticity of demand for imports: 0.4; price elasticity of demand for exports: 0.6
- Cprice elasticity of demand for imports: 0.6; price elasticity of demand for exports: 0.4
- Dprice elasticity of demand for imports: 0.6; price elasticity of demand for exports: 0.6