Figure 30-7

-Refer to Figure 30-7.The graph above,depicts supply and demand for U.S.dollars during a trading day. At a fixed exchange rate of 0.30 pounds per dollar,the dollar is ________ versus the pound. A ________ of the dollar would correct the fundamental disequilibrium that exists in this market.
A) undervalued; devaluation
B) undervalued; revaluation
C) overvalued; revaluation
D) overvalued; devaluation
Correct Answer:
Verified
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