Question: Will Exchange Rates correct a balance-of-trade defecit? Consider the case of a balance-of-trade deficit in the United States, along with a floating exchange rate. While
Will Exchange Rates correct a balance-of-trade defecit?

Consider the case of a balance-of-trade deficit in the United States, along with a floating exchange rate. While a trade deficit in the United States might normally agreements that were made in the past and the US dollar, many international trades are governed by contracts and be adjusted instantaneously. This leads to what is known as the Consider the case of a balance-of-trade deficit in the United States, along with a floating exchange rate. While a trade deficit in the United States might normally agreements that were made in the past and the US dollar, many international trades are governed by contracts and be adjusted instantaneously. This leads to what is known as the
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