Under a Fixed Exchange Rate System,trade Deficits Are Not Corrected

question 14

True/False

Under a fixed exchange rate system,trade deficits are not corrected by automatic changes in domestic prices.

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Definitions:

Allergic Reaction

An immune response to a substance, known as an allergen, that is typically harmless to most people.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to one of higher concentration.

Charged Molecules

Molecules that have an electric charge due to the loss or gain of one or more electrons.

Lipid Molecules

Organic molecules that are fatty acids or derivatives, insoluble in water but soluble in organic solvents, playing key roles in energy storage, structure, and signaling.