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Q. |
In a floating exchange rate system: |
A. | The government intervenes to influence the exchange rate |
B. | The exchange rate should adjust to equate the supply and demand of the currency |
C. | The Balance of Payments should always be in surplus |
D. | The Balance of payments will always equal the government budget |
Answer» B. The exchange rate should adjust to equate the supply and demand of the currency |
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