Question: a) Explain why a stronger dollar could enlarge the U.S. balance of trade deficit. Why could a weaker dollar affect the U.S. balance of trade

a) Explain why a stronger dollar could enlarge the U.S. balance of trade deficit. Why could a weaker dollar affect the U.S. balance of trade deficit? (b) It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Why would this adjustment occur?

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