with a flexible exchange rate system what determines the exchange rate between two countries
A. the volume of gold
B. inflation and interest rates
C. the day-to-day changes in one currency
D. supply and demand

Respuesta :

D.

I believe you mean a floating exchange rate, and if so, then it would be demand and supply which determines the rate of exchange.
wzh

supply and demand

exchange rate between countries depends on their amount of goods, and their need of goods