Why will a depreciation of the deficit nation's currency increase rather than reduce the balanceofpayments deficit when

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Why will a depreciation of the deficit nation's currency increase rather than reduce the balance‐of‐payments deficit when the foreign exchange market is unstable?
Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...
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International Economics

ISBN: 978-1118955765

12th edition

Authors: Dominick Salvatore

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