πŸ“Š International Economics
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
πŸ’¬ Discuss
βœ… Correct Answer: (B) There is excess supply and the exchange rate should fall

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