The market equilibrium value of the exchange rate is the
A) price of domestic goods relative to the price of foreign goods.
B) price of foreign goods relative to the price of domestic goods.
C) number of units of the foreign currency that the domestic currency will buy.
D) number of units of the domestic currency that a foreign currency will buy.
E) exchange rate at which the quantity of the currency demanded in the foreign exchange market is equal to the quantity of the currency supplied.
Correct Answer:
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