Use the following figure showing the supply of, and demand for, Israeli new shekels by holders of U.S. dollars.

-This figure applies to a:
A) fixed exchange rate system between the dollar and the new shekel.
B) flexible exchange rate system between the dollar and the new shekel.
C) gold-based exchange rate system between the dollar and the new shekel.
D) none of the above.
Correct Answer:
Verified
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