Currency equilibrium is more academic than real because:
A)the concept of currency equilibrium was developed by an theoretical economist and has never been observed in practice.
B)when a currency approaches equilibrium,governments act to avoid currency equilibrium.
C)supply and demand constantly react to market forces so that the amount demanded and the amount supplied of a currency are almost never the same.
D)some currencies are pegged and some currencies are free floating so that react to market forces differently.

Question

Quizplus · Accepted Answer

Currency equilibrium is difficult to achieve in practice because supply and demand constantly adjust to market forces. Therefore, the amount demanded and the amount supplied of a currency are almost never equal. This makes currency equilibrium more of an academic concept than a real-world occurrence.

Currency Equilibrium Is More Academic Than Real Because