Answer to Question #227435 in Macroeconomics for Millicent

Question

Equilibrium exchange rate is determined ______.

Select one:

a. when demand for local currency meets the supply of local currency

b. when demand for foreign currency meets the supply for local currency

c. when demand for foreign currency meets the supply of foreign currency

d. when demand for local currency meets supply for foreign currency

Answer 1

c. when demand for foreign currency meets the supply of foreign currency