Refer to Figure 20.5 for the following questions.
Figure 20.5 
-If the government of Thailand wants to peg the baht to the US dollar at a value below 0.03 baht per US dollar,as seen in Figure 20.5,then
A) the baht will be overvalued.
B) the supply of baht for US dollars will be greater than the demand of baht for US dollars.
C) there will be a shortage of baht.
D) the par exchange rate will be set above the equilibrium exchange rate.
Correct Answer:
Verified
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