In the Market for Euros,if the Current Exchange Rate Is

question 102

Multiple Choice

In the market for euros,if the current exchange rate is below the equilibrium rate,

• A) the quantity supplied and the quantity demanded for euros are equal.
• B) there is an excess supply of euros and the exchange rate will fall.
• C) there is an excess demand for euros and the exchange rate will rise.
• D) the exchange rate will neither rise nor fall.
• E) there is an excess demand for euros and the exchange rate will fall.

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