In a flexible-exchange-rate system, the value of a currency is determined by

In a flexible-exchange-rate system, the value of a currency is determined by

In a flexible-exchange-rate system, the value of a currency is determined by



a. Swiss gnomes.
b. the demand and supply for the currency in the foreign exchange market.
c. the government.
d. the intersection of the IS and LM curves.


Answer: B