When nations can run sizable balance of payments deficits,this indicates that the flexible exchange rate system ________ subject to government intervention,which describes exchange rates ________.

Question

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At the present time, the flexible exchange rate system allows for government intervention, as evidenced by the fact that nations can run sizable balance of payments deficits. Before 1973, when the world was operating under a fixed exchange rate system, governments had more control over exchange rates and were less likely to allow for large deficits.

When Nations Can Run Sizable Balance of Payments Deficits,this Indicates