Supply curve of foreign exchange ____________________.

Horizontal straight line parallel to X-axis

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Vertical straight line parallel to Y-axis

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Slope downwards

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Slope upwards

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Solution

The correct option is C Slope upwards
The foreign exchange rate and supply of foreign exchange is positively related and it is upward sloping curve as because the components of supply of foreign exchange rise as foreign exchange rate rises. For example exports rise as the foreign exchange rate rises.

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