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9. Under flexible (floating) exchange rates, trade balances should even out through the mechanism of currency appreciation or depreciation. That is, if country A runs
9. Under flexible (floating) exchange rates, trade balances should even out through the mechanism of currency appreciation or depreciation. That is, if country A runs a trade deficit for long enough with country B, eventually country A's currency will depreciate resulting in its goods being cheaper relative to country B and the trade "surplus will result. Describe in as much detail as possible how trade flows are balanced if the exchange rate is fixed
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