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:

Persuasive Arguments Theory

A theory suggesting that the effectiveness of persuasion is influenced by the quality and quantity of arguments and the relevance to the audience.

Group Polarization

The propensity of a group to arrive at decisions that are significantly more radical than the original tendencies of its participants.

Cautious Approach

A strategy or method characterized by careful consideration and avoidance of risk or error.

Organizational Change

The process through which a company or organization undergoes a significant transformation, which can impact structures, processes, or culture.