-Using the above figure, which of the following is correct?
A) A shortage of guilders exists at an exchange rate above $0.60.
B) A surplus of guilders exists at an exchange rate above $0.60.
C) 1 dollar will sell for 1/2 guilder.
D) 1 guilder will sell for $2.

Question

-Using the above figure, which of the following is correct?
A) A shortage of guilders exists at an exchange rate above $0.60. 
B) A surplus of guilders exists at an exchange rate above $0.60. 
C) 1 dollar will sell for 1/2 guilder. 
D) 1 guilder will sell for $2.

Quizplus · Accepted Answer

A surplus of guilders exists at an exchange rate above $0.60 because the supply of guilders exceeds the demand at that rate.

-Using the Above Figure, Which of the Following Is Correct