Refer to the graph shown. An exchange rate of $2.40 per dinar creates excess:

A. demand for dinar that will cause the dinar to lose value, unless dinar are sold by the government.
B. demand for dinar that will cause the dinar to gain value, unless dinar are sold by the government.
C. supply of dinar that will cause the dinar to lose value, unless dinar are bought by the government.
D. demand for dinar that will cause the dinar to gain value, unless dinar are bought by the government.


Answer: B

Economics

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