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    Principles of Economics Study Set 1
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    Exam 28: Exchange Rates and the Open Economy
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    An Exchange Rate That Varies According to Supply and Demand
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An Exchange Rate That Varies According to Supply and Demand

Question 64

Question 64

Multiple Choice

An exchange rate that varies according to supply and demand for the currency in the foreign exchange market is called a ________ exchange rate.


A) real
B) nominal
C) fixed
D) flexible

Correct Answer:

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