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Currency Equilibrium Is More Academic Than Real Because

Question 14

Multiple Choice

Currency equilibrium is more academic than real because:


A) the concept of currency equilibrium was developed by an theoretical economist and has never been observed in practice.
B) when a currency approaches equilibrium,governments act to avoid currency equilibrium.
C) supply and demand constantly react to market forces so that the amount demanded and the amount supplied of a currency are almost never the same.
D) some currencies are pegged and some currencies are free floating so that react to market forces differently.

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