Question: options 1. outflows/inflows 2. strengthening/weakening 3. correcting/ exaggerating 6. Will exchange rates correct a balance-of-trade deficit? Consider the case of a balance-of-trade deficit in the

options 1. outflows/inflows 2. strengthening/weakening 3. correcting/ exaggerating 6. Will exchange

options

1. outflows/inflows

2. strengthening/weakening

3. correcting/ exaggerating

6. Will exchange rates correct a balance-of-trade deficit? Consider the case of a balance-of-trade deficit in the United States, along with a floating exchange rate. During a balance-of-trade deficit, net financial may be enough to offset net international trade flows, preventing the US dollar from and preventing exchange rate changes from the

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