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If inflation increases, the US trade balance deficit will also rise in response to change. Inflation is not changing. Then, as US inflation increases, the

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If inflation increases, the US trade balance deficit will also rise in response to change. Inflation is not changing. Then, as US inflation increases, the U.S. will reduce its demand for U.S. exported goods. Besides, demand from the United States for imported products from the UK could also increase if US prices increase. Also, money flows from the United States to Britain. It could decrease as well as the capital from the UK in response to lower interest rates. Can grow to the U.S

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