All other things being equal, which of the following developments is most likely to lead to a narrowing of a country's deficit on the current account of its balance of payments?
A depreciation of the domestic currency when the sum of the price elasticities of demand for exports and imports is less than 111
An increase in the domestic household marginal propensity to save
A sustained rise in the domestic inflation rate relative to that of its main trading partners
The adoption of an expansionary fiscal policy combined with an appreciation of the exchange rate
