If in a System of Fixed Exchange Rates the Dollar

question 1

Multiple Choice

If in a system of fixed exchange rates the dollar price of pounds is above the market equilibrium

• A)gold will flow from Canada to Great Britain.
• B)there will be a surplus of pounds.
• C)the Canadian government will have to ration pounds to Canadian importers.
• D)there will be a shortage of pounds.

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Definitions:

Hydrologic Cycle

The hydrologic cycle describes the continuous movement of water on, above, and below the surface of the Earth, through processes such as evaporation, condensation, precipitation, and infiltration.

Groundwater

Water held underground in the soil or in pores and crevices in rock.

Fractures

Breaks in rock or mineral without the movement parallel to the surface of the break, often a result of stress exceeding the strength of the material.

Underground Lakes

Bodies of water that exist beneath the Earth's surface, often found in caves or formed by natural aquifers.