Under a Flexible Exchange Rate System,if the Quantity Supplied of Dollars

question 1

Multiple Choice

Under a flexible exchange rate system,if the quantity supplied of dollars is greater than the quantity demanded of dollars,there is a:

• A)balance of payments deficit and the dollar would depreciate.
• B)balance of payments surplus and the dollar would depreciate.
• C)balance of payments deficit and the dollar would appreciate.
• D)balance of payments surplus and the dollar would appreciate.