-Refer to Figure 12.2. If the Canadian dollar price of the euro were $1.55, the quantity of euros supplied would be __________ than the quantity demanded. This would cause the euro to __________ value.
A) greater; gain
B) less; gain
C) greater; lose
D) less; lose

Question

-Refer to Figure 12.2. If the Canadian dollar price of the euro were $1.55, the quantity of euros supplied would be __________ than the quantity demanded. This would cause the euro to __________ value.
A) greater; gain 
B) less; gain 
C) greater; lose 
D) less; lose

Quizplus · Accepted Answer

If the Canadian dollar price of the euro is $1.55 and this leads to the quantity of euros supplied being greater than the quantity demanded, it indicates a surplus of euros in the market. This surplus would put downward pressure on the value of the euro, causing it to lose value.