Referring to Figure 17.1, at $2.50 per pound, there is a(n) __________. Under the system of flexible exchange rates, this would cause __________ the ________ curve(s).
A. Excess demand of 1 million pounds, leftward shift of, demand
B. Excess supply of 1 million pounds, rightward shift of, supply
C. Excess demand of 1 million pounds, downward movement along, demand & supply
D. Excess supply of 1 million pounds, downward movement along, demand & supply
Answer:D
Referring to Figure 17.1, at $2.50 per pound, there is a(n) __________. Under the system of flexible exchange rates, this would cause __________ the ________ curve(s).
A. Excess demand of 1 million pounds, leftward shift of, demand B. Excess supply of 1 million pounds, rightward shift of, supply C. Excess demand of 1 million pounds, downward movement along, demand & supply D. Excess supply of 1 million pounds, downward movement along, demand & supply