Multiple Choice
In the market for British pounds,if the current exchange rate is above the equilibrium rate,
A) there is an excess supply of pounds and those who hold pounds will be able to sell them and make a profit
B) there is an excess supply of pounds and the exchange rate will fall
C) there is an excess demand for pounds and suppliers will not be able to supply enough pounds to meet the demand
D) there is an excess demand for pounds and the exchange rate will rise
E) the quantity of pounds supplied is barely sufficient to meet the quantity demanded
Correct Answer:
Verified
Correct Answer:
Verified
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