Under Independently Floating Exchange Rate Systems, When Aggregate Demand for a Currency

Multiple Choice

Under independently floating exchange rate systems, when aggregate demand for a currency exceeds aggregate supply for a particular country:

A) The currency should strengthen and have more foreign currency units for each domestic unit
B) The currency should strengthen and have fewer foreign currency units for each domestic unit
C) The currency should weaken and have fewer foreign currency units for each domestic unit
D) The currency should weaken and have more foreign currency units for each domestic unit