Will exchange rates correct a balance-of-trade deficit? Consider the case of a balance-of-trade deficit in the United States, along with a floating exchange rate. During a balance-of-trade deficit, net financial_______(Inflows/outflows) may be enough to offset net international trade flows, preventing the US dollar from________(Strengthening/weakening) and preventing exchange rate changes from_________(correcting/exaggerating) the problem.

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A: *ANSWER:-

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A:

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A:

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