When a foreign currency crisis occurs,there is a(n)__________ in the supply of the currency and a(n)__________ in the demand for that currency.
A) increase;increase
B) decrease;decrease
C) increase;decrease
D) decrease;increase
E) increase;no change.

Question

Quizplus · Accepted Answer

During a foreign currency crisis, there is typically an increase in the supply of the currency as investors and holders of the currency try to sell it off, and a decrease in demand as confidence in the currency falls.

When a Foreign Currency Crisis Occurs,there Is A(n)__________ in the Supply