If the exchange rate is above equilibrium, there will be _ in the foreign exchange market.

Name: If the exchange rate is above equilibrium, there will be _ in the foreign exchange market.
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Question

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If the exchange rate is above equilibrium, it means the foreign currency is overvalued and therefore expensive compared to the domestic currency. This would deter foreigners from purchasing goods and services from the domestic market, and as a result, there would be a surplus of the foreign currency in the market.

If the Exchange Rate Is Above Equilibrium, There Will Be