Author Question: Which of the following statements is true of a flexible exchange rate system? A) Market forces ... (Read 49 times)

drink

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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


welcom1000

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Answer to Question 1

D

Answer to Question 2

FALSE



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