When the country is experiencing a balance of payments deficit, it must devalue its currency.

Name: When the country is experiencing a balance of payments deficit, it must devalue its currency.
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Question

Quizplus · Accepted Answer

A country experiencing a balance of payments deficit does not necessarily have to devalue its currency; it can use other measures such as adjusting interest rates, implementing trade policies, or using foreign reserves to address the deficit.

When the Country Is Experiencing a Balance of Payments Deficit