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Which would you expect to be more volatile

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Question - Usually, supply and demand shift independently of one another, but in the market for foreign exchange, supply and demand are not independent. When supply moves in one direction, demand moves in the opposite direction. Ceteris paribus, which would you expect to be more volatile, prices (exchange rates) in market for foreign exchange or prices in markets where supply and demand are independent? Offer an explanation for your answer.

Reference no: EM131608607

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