Multiple Choice
The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 per pound, U.S. demand for pounds would ________ the supply of pounds for sale and there would be a _______ of pounds in the foreign exchange market.
A) exceed; shortage
B) be less than; shortage
C) exceed; surplus
D) be less than; surplus
E) be equal to; shortage
Correct Answer:
Verified
Correct Answer:
Verified
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