Q.

If the exchange rate is below the equilibrium level then in a floating exchange rate system:

A. There is excess demand and the exchange rate should fall
B. There is excess supply and the exchange rate should fall
C. There is excess demand and the exchange rate should rise
D. There is excess supply and the exchange rate should rise
Answer» C. There is excess demand and the exchange rate should rise
830
0
Do you find this helpful?
2

View all MCQs in

International Economics

Discussion

No comments yet