ECS3703 Assignment 1 QUIZ (COMPLETE ANSWERS) Semester 2 2025 – DUE 1 September 2025; 100% correct solutions and explanations.

ECS3703 Assignment 1 QUIZ (COMPLETE ANSWERS) Semester 2 2025 – DUE 1 September 2025; 100% correct solutions and explanations.Question 1 Marked out of 2.00 Question 2 Not yet answered Marked out of 2.00 QUIZ The foreign exchange market is stable when a. All of the above b. The supply curve of foreign exchange is negatively inclined and less elastic than the demand curve c. The demand curve of foreign exchange is negatively inclined, and the supply curve of foreign exchange ispositively inclined d. The sum of the absolute values of the elasticity of the nation's demand of imports and the foreign demand for the nation's exports is greater than one Clear my choice An effective exchange rate is a a. Spot rate b. Flexible exchange rates c. Forward rate d. weighted average of the exchange rates between the domestic currency and the nation's most important trade partners Clear my choice Question 3 Not yet answered Marked out of 2.00 Question 4 Not yet answered Marked out of 2.00 Question 5 Not yet answered Marked out of 2.00 If the BP curve is above the point of intersection of the IS and LM curves, the nation will: a. have a balance of payments deficit at that le