The exchange rate is volatile because
A) the demand curve and the supply curve are horizontal.
B) the demand curve is vertical.
C) when a relevant factor changes, demand and supply tend to change in the same direction.
D) the supply curve is vertical.
E) when a relevant factor changes, demand and supply tend to change in opposite directions.
Correct Answer:
Verified
Q58: In the foreign exchange market, an increase
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Q62: Exchange rate changes are
A) very volatile because
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