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Assume the country of X has a balance of payments surplus. How would the government and markets react to correct this imbalance under a fixed
Assume the country of X has a balance of payments surplus. How would the government and markets react to "correct" this imbalance under a fixed exchange rate regime? Under a floating exchange rate regime? Describe the process that would take place for each exchange rate regime, and feel free to use charts to add to your description as was done in class.
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