If a Dollar Is More Expensive in Terms of a Foreign

Multiple Choice

If a dollar is more expensive in terms of a foreign currency than the equilibrium exchange rate,what will happen in the foreign exchange market?

A) There will be a shortage of dollars and downward pressure on the exchange rate.
B) There will be a shortage of dollars and upward pressure on the exchange rate.
C) There will be a surplus of dollars and downward pressure on the exchange rate.
D) There will be a surplus of dollars and upward pressure on the exchange rate.