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Exchange Rates: Equilibrium
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Problem 10
Exchange Rates: Equilibrium
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23. Exchange Rates / Exchange Rates: Equilibrium / Problem 10
Problem 10
What is a potential drawback of treating the supply of US dollars as fixed in exchange rate analysis?
A
It has no significant impact on the analysis of exchange rates.
B
It simplifies the analysis by focusing solely on demand shifts.
C
It ignores the potential impact of supply changes on exchange rates.
D
It leads to more accurate predictions of exchange rate movements.
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