Question: Equilibrium exchange rate occurs where____________________. where the quantity supplied equals the quantity demanded of a foreign currency at a specific local exchange rate where the

Equilibrium exchange rate occurs where____________________.

  1. where the quantity supplied equals the quantity demanded of a foreign currency at a specific local exchange rate
  2. where the quantity supplied exceeds the quantity demanded of a foreign currency at a specific local exchange rate
  3. where the quantity supplied is less than the quantity demanded of a foreign currency at a specific local exchange rate
  4. none of the above

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