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Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the following chart. The exchange rate is currently 1.80 = Â£1.00. Which of the following is correct?a. At an exchange rate of1.80 = Â£1.00, supply for British pounds exceeds demand.b. Under a flexible exchange rate regime, the U.S. dollar will depreciate to an exchange rate of 1.90 = Â£1.00.c. At an exchange rate of1.80 = Â£1.00, demand for British pounds exceeds supply.d. At an exchange rate of 1.80

Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the following chart. The exchange rate is currently 1.80 = Â£1.00. Which of the

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