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    Principles of Macroeconomics Study Set 12
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    Exam 19: Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates
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    Under a System of Floating Exchange Rates, a Shortage in a Currency
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Under a System of Floating Exchange Rates, a Shortage in a Currency

Question 146

Question 146

Multiple Choice

Under a system of floating exchange rates, a shortage in a currency will lead to a(n)


A) depreciation of that currency.
B) appreciation of that currency.
C) long-term surplus of that currency.
D) long-term shortage of that currency.

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