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If the Government of a Country Is Maintaining an Overvalued

Question 107

Multiple Choice

If the government of a country is maintaining an overvalued currency against the dollar,then the quantity of ________ in the foreign exchange market.


A) dollars supplied will exceed the quantity of dollars demanded
B) dollars demanded will equal the quantity of dollars supplied
C) dollars demanded will exceed the quantity of dollars supplied
D) domestic currency demanded will exceed the quantity of dollars supplied

Correct Answer:

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