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:

Economically Disadvantaged

Describes individuals or communities with a lower income and fewer resources than the average, leading to fewer opportunities and access to services.

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