The larger a country's trade deficit, the _____ in the market for that currency.

Name: The larger a country's trade deficit, the _____ in the market for that currency.
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Question

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A larger trade deficit means that the country is importing more than it is exporting, which requires more of the importing countries' currency to purchase the goods. This increases the supply of the importing countries' currency relative to the demand, leading to a decrease in the value of that currency.

The Larger a Country's Trade Deficit, the _____ in the Market