Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a countrys

Question:

Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a country’s potential output with globalization if that country’s exchange rate falls. Explain your answer.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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