In 2011, which country was most likely to experience a self-adjusting change in its exchange rate to correct its current account deficit?

The United Kingdom would most likely experience a self-adjusting change in its exchange rate to correct its current account deficit in 2011. This is primarily due to its flexible exchange rate regime. With a flexible exchange rate, the currency value can fluctuate based on market forces, such as supply and demand. If the UK is running a current account deficit, it implies that the country is importing more goods and services than it is exporting. This excess demand for foreign currency (to pay for imports) tends to lead to depreciation of the British pound.

As the pound depreciates, British exports become cheaper for foreign buyers, which can stimulate an increase in export sales. Simultaneously, imports become more expensive for domestic consumers, likely reducing import demand. This self-correcting mechanism helps the UK to potentially balance its current account over time through changes in the exchange rate.

In contrast, the other countries listed (Spain, France, and Germany) were all part of the Eurozone in 2011. They used the euro as their currency, which is governed by the European Central Bank and does not allow for individual member states to independently adjust their exchange rates. Thus, these countries would not have experienced the same type of self-adjusting exchange rate mechanism to correct