Under a fixed exchange rate system,countries that ran large,persistent balance of payments surpluses would ________ international reserves,thereby pressuring them into ________ their exchange rate.

Question

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Under a fixed exchange rate system, countries with persistent balance of payments surpluses gain international reserves, which can lead to upward pressure on their currency, prompting them to revalue their exchange rate to maintain the fixed system.

Under a Fixed Exchange Rate System,countries That Ran Large,persistent Balance