FIGURE 34-2 -Refer to Figure 34-2.If the exchange rate is e 2 ,there is

If the exchange rate is e2, it implies that the demand for foreign exchange exceeds the supply, leading to an excess demand for foreign exchange.

FIGURE 34-2 -Refer to Figure 34-2.If the exchange rate is e 2 ,there is

If the exchange rate is e2, it implies that the demand for foreign exchange exceeds the supply, leading to an excess demand for foreign exchange.

Solved

FIGURE 34-2 -Refer to Figure 34-2.If the Exchange Rate Is E₂,there Is

Question 72

Multiple Choice

FIGURE 34-2 -Refer to Figure 34-2.If the exchange rate is e<sub>2</sub>,there is A) an excess supply of foreign exchange. B) pressure for the Canadian dollar to appreciate. C) pressure for the exchange rate to fall. D) a shortage of Canadian dollars. E) an excess demand for foreign exchange. FIGURE 34-2
-Refer to Figure 34-2.If the exchange rate is e₂,there is

A) an excess supply of foreign exchange.
B) pressure for the Canadian dollar to appreciate.
C) pressure for the exchange rate to fall.
D) a shortage of Canadian dollars.
E) an excess demand for foreign exchange.

Correct Answer: