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If the Real Exchange Rate for the Dollar Is Above

Question 188

Multiple Choice

If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is


A) greater than the quantity demanded and the dollar will appreciate.
B) greater than the quantity demanded and the dollar will depreciate.
C) less than the quantity demanded and the dollar will appreciate.
D) less than the quantity demanded and the dollar will depreciate.

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