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irinina [24]
2 years ago
13

Draw a demand for dollars curve. Label it D. Draw a supply of dollars curve. Label it S. Draw a point at the equilibrium quantit

y and equilibrium exchange rate. Draw an arrow between the D and S curves that indicates a price at which there is a surplus of dollars. Label it. What happens in the foreign exchange market when a surplus of dollars​ exists? When there is a surplus of dollars in the foreign exchange​ market, _____
Business
1 answer:
brilliants [131]2 years ago
3 0

Answer:

The forces of demand and supply in the market will pull the foreign exchange market into equilibrium.

Explanation:

When there is a surplus of dollar in the foreign exchange market the forces of demand and supply  will pull the foreign exchange market into equilibrium.<em> i.e. The exchange rate will be reduced to bring the exchange market to equilibrium. </em> without change in demand or supply.

attached below is the required graph.

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