Question: Other things equal, what effect will an increase in the current account deficit have on the home currency value? Will it increase, decrease or remain

Other things equal, what effect will an increase in the current account deficit have on the home currency value? Will it increase, decrease or remain the same? Please provide an explanation for your answer. And next, assume that a bank's bid rate on Euro is $1.45 and its ask rate is $1.47. What is its bid ask percentage spread?

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