-In the table above,if the exchange rate is equal to $2.00 per pound,there is a ______ and the exchange rate will______.
A) surplus of pounds,decrease
B) surplus of pounds,increase
C) shortage of pounds,decrease
D) shortage of pounds,increase

Question

-In the table above,if the exchange rate is equal to $2.00 per pound,there is a ______ and the exchange rate will______.
A) surplus of pounds,decrease 
B) surplus of pounds,increase 
C) shortage of pounds,decrease 
D) shortage of pounds,increase

Quizplus · Accepted Answer

If the exchange rate is $2.00 per pound and there is a surplus of pounds, it means the supply of pounds exceeds the demand at that rate, causing the exchange rate to decrease to restore equilibrium.

-In the Table Above,if the Exchange Rate Is Equal to $2.00