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The Accompanying Diagram Represents a Flexible Exchange Market for Foreign

Question 109

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The accompanying diagram represents a flexible exchange market for foreign currency. At the price $0.80 for 1 euro, A) the quantity of euros demanded equals the quantity supplied. B) the dollar-euro exchange rate is unstable. C) the dollar price of 1 euro equals the euro price of 1 dollar. D) there will be a surplus of euros in the foreign exchange market. The accompanying diagram represents a flexible exchange market for foreign currency. At the price $0.80 for 1 euro,


A) the quantity of euros demanded equals the quantity supplied.
B) the dollar-euro exchange rate is unstable.
C) the dollar price of 1 euro equals the euro price of 1 dollar.
D) there will be a surplus of euros in the foreign exchange market.

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