Multiple Choice
If speculators believe a currency is undervalued,their trades in international exchange markets will
A) increase the surplus of the currency at the existing fixed exchange rate.
B) decrease the surplus of the currency at the existing fixed exchange rate.
C) decrease the shortage of the currency at the existing fixed exchange rate.
D) increase the shortage of the currency at the existing fixed exchange rate.
Correct Answer:
Verified
Correct Answer:
Verified
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