Question

In 2015, when the developing economy of Nanoosh suffered from a "fundamental disequilibrium," its government choose not to devalue its currency. A likely consequence of this would be _____.

Answer 1

A balance of payments equilibrium

Step-by-step explanation:

A “fundamental disequilibrium” exists when outward payments have a continuing tendency not to balance inward payments. A disequilibrium may occur for various reasons.

Balance of payments equilibrium occurs when induced balance of payments transactions; those engineered by the government to influence the nominal exchange rate are zero.