Reliance on an automatic adjustment process tends to be unacceptable in trade-deficit nations since it requires them to accept price deflation and/or falling income as a cost of reducing imports.

Question

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Trade-deficit nations typically prefer other methods, such as currency devaluation or trade barriers, to reduce their imports without relying solely on an automatic adjustment process that may cause deflation and income decreases.

Reliance on an Automatic Adjustment Process Tends to Be Unacceptable