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Under the Existing System of Partially-Flexible Exchange Rates, a Country

Question 178

Multiple Choice

Under the existing system of partially-flexible exchange rates, a country experiencing what it believes is a long-term balance of payments deficit might be expected to:


A) sell its own currency in the foreign exchange market.
B) buy its own currency in the foreign exchange market.
C) let its currency lose value.
D) let its currency gain value.

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