Which of the Following Is Consistent with Moving from a Shortage

question 125

Multiple Choice

Which of the following is consistent with moving from a shortage to equilibrium in the market for foreign currency exchange?

• A)the exchange rate falls so foreign residents want to buy more U.S.goods and services
• B)the exchange rate falls so foreign residents want to buy fewer U.S.goods and services
• C)the exchange rate rises so foreign residents want to buy more U.S.goods and services
• D)the exchange rate rises so foreign residents want to buy fewer U.S.goods and services

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