Question: Question 4 (10 marks) a. A floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would

Question 4 (10 marks) a. A floating exchange rate will adjust to

Question 4 (10 marks) a. A floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur. b. Evaluate if the statement in part a is correct. (6 marks) (4 marks)

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