If the market price of a currency is above the equilibrium price, there is a __________ and __________ pressure on the price.

Name: If the market price of a currency is above the equilibrium price, there is a __________ and __________ pressure on the price.
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Question

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When the market price of a currency is above the equilibrium price, it means that the supply of the currency exceeds the demand for it, creating a surplus. This surplus puts downward pressure on the price to move back towards equilibrium.

If the Market Price of a Currency Is Above the Equilibrium