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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is a Foreign Exchange Gap?

Author: eric_galvao



Answer:

-When Capital Outflows from a Nation are GREATER than Capital Inflows -This can happen when the Nation is Dependent on Exports of Primary Products, or Imports of Manufactured Goods. Or if it has to Spent a lot of money to Service its Debt


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