The market equilibrium value of a country's exchange rate is
A) constant over a prolonged period of time.
B) determined by the supply of the country's currency in the foreign exchange market.
C) determined by the demand for the country's currency in the foreign exchange market.
D) determined by the supply of and demand for the country's currency in the domestic financial market.
E) determined by the supply of and demand for the country's currency in the foreign exchange market.
Correct Answer:
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