Country A and country B are each on a full gold standard with fixed exchange rates. Country

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Country A and country B are each on a full gold standard with fixed exchange rates. Country A runs an export surplus, whereas country B runs an export balance deficit. Describe the adjustment process that will restore balance to the flow of trade between the two countries?
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Financial Theory and Corporate Policy

ISBN: 978-0321127211

4th edition

Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri

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