McqMate
| Q. |
If the exchange rate is above 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» B. There is excess supply and the exchange rate should fall | |
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