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    Principles of Microeconomics
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    Exam 20: Exchange Rates, Balance of Payments, and International Debt
  5. Question
    If a Disequilibrium Occurs in the Foreign Exchange Market, What
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If a Disequilibrium Occurs in the Foreign Exchange Market, What

Question 50

Question 50

Essay

If a disequilibrium occurs in the foreign exchange market, what are possible solutions? Why might governments choose not to let the price of their currencies adjust to clear the market?

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Governments can devalue their currencies...

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