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What happens to the equilibrium rate of exchange and to the

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Reference no: EM13483928 , Length: 20

a. What happens to the equilibrium rate of exchange and to the equilibrium quantity of foreign exchange if the nation's demand for the foreign currency decreases? Why?

b. How is a deficit or a surplus in a nation's balance of payments corrected under a flexible-exchange-rate system?

Reference no: EM13483928

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