If the Exchange Rate Is Above Equilibrium, There Will Be

question 45

Multiple Choice

If the exchange rate is above equilibrium, there will be ________ in the foreign exchange market.

• A)a surplus
• B)a decrease in demand
• C)an increase in demand
• D)a shortage

---

Definitions:

Federal Income Tax

Tax levied by the federal government on individuals, corporations, estates, and other entities' annual earnings.

State Unemployment

A government-provided insurance program that offers temporary financial assistance to the unemployed who lost their jobs through no fault of their own.

Federal Unemployment

Refers to the United States federal government program that provides unemployment benefits to eligible workers.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, used to fund the Social Security program in the United States.