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A System of Flexible Exchange Rates Can Be Expected to Correct

Question 15

Multiple Choice

A system of flexible exchange rates can be expected to correct a country's balance of payments deficit through:


A) a decline in the value of the country's currency relative to the currencies of other nations
B) a rise in the value of the country's currency relative to the currencies of other nations
C) the receipt of gold from countries with the surplus
D) declining import prices

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