Refer to Figure 19-4. The equilibrium exchange rate is at A, 3/pound. Suppose the British government pegs its currency at 4/pound. Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2.
After the shift,
A) there is a surplus of pounds equal to 400 million.
B) there is a shortage of pounds equal to 600 million.
C) there is a shortage of pounds equal to 200 million.
D) there is a surplus of pounds equal to 600 million.
E) there is a shortage of pounds equal to 400 million.
Question 2
Refer to Figure 17-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) an increase in the expected rate of inflation from 4.0 to 5.5 percent.
B) an increase in the natural rate of unemployment from 5.0 to 6.2 percent.
C) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent.
D) None of the above is correct.
British Library
This chart shows the various lines of responsibility and how they differ in presidential and parliam
Apply scissoring between metatarsals and figure-8s on toe joints to mobilize the foot.
Soils support plant growth through ion exchange
Effect of Increasing the Investment Rate on the Steady State
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...