Q1) The equilibrium exchange rate of pounds is USD1.70. At an exchange rate of USD1.72 per pound: * A) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage...

Q1) The equilibrium exchange rate of pounds is USD1.70. At an exchange rate of USD1.72 per pound: *

A) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.

B) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.

C) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.

D) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.

Jun 08, 2022

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