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If the current spot rate is 2.10 (HC/FC) and the government undertakes policies to depreciate the currency 16%, what is the new spot rate? Note:

If the current spot rate is 2.10 (HC/FC) and the government undertakes policies to depreciate the currency 16%, what is the new spot rate? Note: 2.10 * 1.16 is not the right formula.

Based on this, what will be the immediate effect of the depreciation on the trade balance (it was at -249 before the depreciation). Please provide a numerical answer.

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