One signal that the U.S.dollar was overvalued in the early 1970s was

Question

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The recurring balance of trade deficits in the United States indicated that the U.S. dollar was overvalued in the early 1970s. When a country experiences chronic trade deficits, it means that it is importing more than it is exporting, which puts pressure on its currency to depreciate in value. This suggests that the U.S. dollar was being overvalued relative to its purchasing power, and that the exchange rate needed to adjust to reflect this.

One Signal That the U