When a(n)_____________condition is present,a disturbance from the equilibrium exchange rate pushes the exchange rate farther away from equilibrium.
A)unstable foreign exchange market
B)Marshall-Lerner condition
C)J-curve effect
D)stable foreign exchange market

Question

Quizplus · Accepted Answer

An unstable foreign exchange market condition is characterized by a situation where a disturbance from the equilibrium exchange rate pushes the exchange rate farther away from equilibrium, rather than correcting towards it.

When A(n)_____________condition Is Present,a Disturbance from the Equilibrium Exchange Rate