4008EconomicsMedium
When the price of foreign currency (the exchange rate) is above the equilibrium level?
Athe supply of foreign exchange shifts backward to the left
Bthe supply of foreign exchange shifts outward to the right
Can excess supply of that currency exists in the foreign exchange market
Dan excess demand for that currency exists in the foreign exchange market
Correct answer
C. an excess supply of that currency exists in the foreign exchange market
Explanation
The correct answer is an excess supply of that currency exists in the foreign exchange market.