Refer to the diagram. At the price $.80 for 1 euro:
The following diagram is a flexible exchange market for foreign currency:
A. the quantity of euros demanded equals the quantity supplied.
B. the dollar-euro exchange rate is unstable.
C. the dollar price of 1 euro equals the euro price of 1 dollar.
D. there will be a surplus of euros in the foreign exchange market.
A. the quantity of euros demanded equals the quantity supplied.
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