Question: 2. The US is running a large trade deficit - more than $860bn in 2021. a. What is a trade deficit? b. How can

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2. The US is running a large trade deficit - more than $860bn in 2021. a. What is a trade deficit? b. How can a flexible exchange rate automatically help a country reduce its trade deficit? c. Explain why, even with a flexible exchange rate, the trade deficit might not be completely eliminated.

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