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Under a Flexible Exchange Rate System,if the Quantity Supplied of Dollars

Question 1

Multiple Choice

Under a flexible exchange rate system,if the quantity supplied of dollars is greater than the quantity demanded of dollars,there is a:


A) balance of payments deficit and the dollar would depreciate.
B) balance of payments surplus and the dollar would depreciate.
C) balance of payments deficit and the dollar would appreciate.
D) balance of payments surplus and the dollar would appreciate.

Correct Answer:

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