If a country runs a deficit on the overall account, i. e., BCA + BFA < 0, the central bank can supply foreign exchange out of its reserves. But, if the deficit persists, the central bank will run out of its reserves, and the country may be forced to revalue its currency.
a) true
b) false
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If a country runs a deficit on the overall account, i. e., BCA + BFA < 0, the central bank can su...
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