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Assess the validity of the given statements

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Question: 1. "The existence of a downward- (or backward-) sloping supply curve of foreign exchange is a sufficient condition for the generation of an unstable equilibrium position in the foreign exchange market." Assess the validity of this statement.

2. "The existence of a downward- (or backward-) sloping supply curve of foreign exchange is a necessary condition for the generation of an unstable equilibrium position in the foreign exchange market." Assess the validity of this statement.

Reference no: EM132177297

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