1. Hong Kong has a "currency board" system. This means they have a fixed exchange rate regime with free flows of capital. In fact, the Hong Kong dollar is pegged to the U.S. dollar at an exchange rate of HK$7.80 = US$1 (unlike mainland China, which has a different currency). In 2019, Hong Kong had a more than US$26 billion trade deficit with the United States. Thinking about the balance of payments structure, discuss three different ways that this exchange rate could remain stable even if this trade deficit with the U.S. persists (these could be economic phenomena and/or specific policies). None of your responses can involve the HK dollar changing in value (the exchange rate is fixed!) or Hong Kong not having a US$26 billion trade deficit with the United States (2019 has already happened!).