Under flexible exchange rates, what happens if a country experiences a deficit in its balance of payments?

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Under flexible exchange rates, what happens if a country experiences a deficit in its balance of payments? How long can a deficit in the balance of payments persist?

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Financial System Of The Economy Principles Of Money And Banking

ISBN: 9780765622464

5th Edition

Authors: Maureen Burton,Bruce Brown

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Question Posted: Nov 28, 2023 11:59 PM

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Under flexible exchange rates, what happens if a country experiences a deficit in its balance of payments?

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Under flexible exchange rates a deficit in the balance of payments occurs when a countrys imports exceed its exports leading to a net outflow of forei...View the full answer

Financial System Of The Economy Principles Of Money And Banking

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