Refer to Figure 15.1 for the Following Questions

Multiple Choice

Refer to Figure 15.1 for the following questions.
Figure 15.1

-Suppose the above graph in Figure 15.1 represents the market for the British pound under the Bretton Woods System. If the par exchange rate was set at 2 United States dollars and the situation persisted:

A) the currency would be overvalued.
B) there would need to be devaluation of the currency.
C) the supply of pounds would be less than the demand for pounds.
D) the supply of pounds would be greater than the demand for pounds.