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The fixed exchange rate system is tough in that the system does not allow the rates to adjust to trade.If a trade deficit occurs, there
The fixed exchange rate system is tough in that the system does not allow the rates to adjust to trade.If a trade deficit occurs, there is no way to push up the currency and reduce the trade deficit.Do you think this lack of adjustment causes problems for the country in the long-run, short-run, or both?
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