If the Equilibrium Exchange Rate of the Dollar Is 1

question 255

Multiple Choice

If the equilibrium exchange rate of the dollar is 1.10 euros per dollar and currently the exchange rate is 0.90 euros per dollar, then there is a ________ of dollars that leads to ________.

• A) surplus; a rise in the exchange rate
• B) shortage; the demand curve for dollars shifting rightward
• C) surplus; the supply curve of dollars shifting leftward
• D) shortage; a rise in the exchange rate
• E) shortage; the supply curve of dollars shifting rightward

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Definitions:

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, causing someone to enter into a contract.

Real Estate

Property comprising land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Basement

The lowest floor of a building, typically below ground level.

Conversion

An unauthorized act that deprives an owner of personal property without their consent.