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Suppose that there is an increase in foreign output . The trade balance falls under float and fixed. The change in the trade balance is
Suppose that there is anincrease in foreign output.
The trade balance falls under float and fixed.
The change in the trade balance is ambiguous under float and fixed.
The trade balance rises under float and fixed.
The trade balance rises under float and falls under fixed.
The trade balance falls under float and rises under fixed.
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