Multiple Choice
The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.87, U.S. demand for Swiss francs would ______ the supply of francs for sale and there would be a ______ of francs in the foreign exchange market.
A) exceed; shortage
B) be less than; shortage
C) exceed; surplus
D) be less than; surplus
Correct Answer:
Verified
Correct Answer:
Verified
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