Which of the following statements is true of a flexible exchange rate system?
A) Market forces tend to undervalue a currency over time.
B) Market forces tend to overvalue a currency over time.
C) Market forces do not affect exchange rates between different currencies.
D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.
Question 2
If supply of a product increases and demand for the product decreases, equilibrium quantity will definitely change.
Indicate whether the statement is true or false
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