A country in south america is adversely affected by trade deficits and the government wants to move to a floating exchange rate system to help adjust trade imbalances. however, a political group is opposing this. as critics of floating exchange rates, they claim that trade deficits are determined by the?

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10-11-2022
Social Studies

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A country in south america is adversely affected by trade deficits and the government wants to move to a floating exchange rate system to help adjust trade imbalances. however, a political group is opposing this. as critics of floating exchange rates, they claim that trade deficits are determined by the?

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aarinimishra75 aarinimishra75 · Answer 1 · 2022-11-18T10:17:11+01:00

As critics of floating exchange rates, they claim that trade deficits are determined by the balance between savings and investment in a country. Thus, option (b) is correct.

What is the country?

The term country refers to the division according to the area. The World as the divided to the particular country. The different countries are the different languages and the dress code. For example:- China, India and the America etc.

According to detractors of the floating exchange rate system, a trade deficit (where purchases surpass exports) is generated by the income balance. The country savings and investments were balanced.

As a result, the critics of floating exchange rates, they claim that trade deficits are determined by the balance between savings and investment in a country.

Learn more about on country, here:

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Your question is incomplete, but most probably the full question was.

external value of the currency of a country.
balance between savings and investment in a country.
mechanism of competitive currency devaluation.
valuations made by International Monetary Fund and the World Bank.
exchange rates of other currencies.