A country with a persistent trade surplus is being pressured to let its currency appreciate. Which of the following best describes the adjustment that must occur if currency appreciation is to be...

A country with a persistent trade surplus is being pressured to let its currency appreciate. Which of the following best describes the adjustment that must occur if currency appreciation is to be effective in reducing the trade surplus?

A. Domestic investment must decline relative to saving.

B. Foreigners must increase investment relative to saving.

C. Global capital flows must shift toward the domestic market.