Question: Under a flexible exchange rate system, if the quantity supplied of dollars is less than the quantity demanded of dollars, there is a: A. balance

Under a flexible exchange rate system, if the quantity supplied of dollars is less than the quantity demanded of dollars, there is a:

A.

balance of payments surplus and the dollar would appreciate.

B.

balance of payments deficit and the dollar would appreciate.

C.

balance of payments deficit and the dollar would depreciate.

D.

balance of payments surplus and the dollar would depreciate.

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