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In a Floating Exchange Market, the Exchange Rate for Pesos

Question 18

Multiple Choice

In a floating exchange market, the exchange rate for pesos and yen will not change when


A) the yen trades at a rate below the equilibrium level.
B) the peso trades at a rate above the equilibrium level.
C) the currencies trade at the equilibrium exchange rate.
D) it will change in all of these situations.

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