Economics B A-Level
Automatic stabiliser
What Automatic stabiliser means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Automatic stabiliser
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Reference: Pearson Edexcel
A role of a floating exchange rate whereby a current account deficit increases the supply of the currency, causing depreciation, which makes exports cheaper and imports more expensive and helps to correct the deficit automatically.
Topics that use Automatic stabiliser
- Policy instruments (Pearson Edexcel A-Level)
Related terms
Using Automatic stabiliser in the exam
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