An "automatic" adjustment mechanism would require a trade-surplus nation to accept price deflation and/or falling income as the cost of increasing imports.
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Q84: Figure 13.3.U.S.Capital and Financial Account Under a
Q85: Figure 13.4.Canadian Economy Under a Fixed Exchange
Q86: Reliance on an automatic adjustment process tends
Q87: For the income adjustment mechanism to reverse
Q88: Figure 13.4.Canadian Economy Under a Fixed Exchange
Q90: If the marginal propensity to save equals
Q91: Figure 13.4.Canadian Economy Under a Fixed Exchange
Q92: For an open economy subject to international
Q93: Figure 13.4.Canadian Economy Under a Fixed Exchange
Q94: Keynesian theory asserts that,under a system of
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