When there is a surplus of dollars in the foreign exchange market, O A. the demand for Canadian dollars will increase so the foreign exchange market can move into equilibrium O B. prices in Canada will fall relative to prices in the United States OC. the supply of Canadian dollars will increase so the foreign exchange market can move into equilibrium O D. the forces of supply and demand pull the foreign exchange market into equilibrium

When there is a surplus of dollars in the foreign exchange market, O A. the demand for Canadian dollars will increase so the foreign exchange market can move into equilibrium O B. prices in Canada will fall relative to prices in the United States OC. the supply of Canadian dollars will increase so the foreign exchange market can move into equilibrium O D. the forces of supply and demand pull the foreign exchange market into equilibrium

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

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