When a country's current account moves into disequilibrium,automatic adjustments in tariffs and quotas occur which move the current account back into equilibrium.

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Automatic adjustments in tariffs and quotas may not necessarily occur when a country's current account moves into disequilibrium. Other factors such as exchange rates, interest rates, and income levels can also impact the current account balance. In some cases, policymakers may choose to intervene using monetary or fiscal policies to correct the imbalance.

When a Country's Current Account Moves into Disequilibrium,automatic Adjustments in Tariffs