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"If country A have an inflationary situation and they pegged (fix) their money with country B then what is the effect on their trade?
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"If country A have an inflationary situation and they pegged (fix) the...
As mentioned there is inflation in country A as compared to country B,this means for the people of country A the domestic goods would be costlier as compared to the goods of country B.So the exports from country B to country A will increase leading to surplus trade balace for country B and the imports of country A from country B will also increase leading to leading to deficit in trade balance for country A
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"If country A have an inflationary situation and they pegged (fix) their money with country B then what is the effect on their trade?
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"If country A have an inflationary situation and they pegged (fix) their money with country B then what is the effect on their trade? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about "If country A have an inflationary situation and they pegged (fix) their money with country B then what is the effect on their trade? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "If country A have an inflationary situation and they pegged (fix) their money with country B then what is the effect on their trade?.
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