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

question 40

Multiple Choice

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

• A) gain; devaluing
• B) gain; revaluing
• C) lose; devaluing
• D) lose; revaluing

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Definitions:

Simple Events

Events that cannot be broken down any further into simpler components in the context of probability.

Probabilities

The measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Simple Events

An event in probability that consists of only one outcome or occurrence and cannot be broken down further.

Probabilities

The likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.