In the table above, if the exchange rate is equal to $2.00 per pound, then there is a ______, and the exchange rate will______.
A) surplus of pounds, decrease
B) surplus of pounds, increase
C) shortage of pounds, decrease
D) shortage of pounds, increase

Question

Quizplus · Accepted Answer

If the exchange rate is $2.00 per pound and there is a surplus of pounds, it means the supply of pounds exceeds the demand at this rate, leading to a decrease in the exchange rate to restore equilibrium.

In the Table Above, If the Exchange Rate Is Equal