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Author Question: Refer to Figure 19-8.The equilibrium exchange rate is atA, $1.25/euro. Suppose the ... (Read 633 times)

faduma

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on: Mar 16, 2019

Question 1

Figure 19-8










Refer to Figure 19-8.  The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. At the pegged exchange rate,


◦ there is a shortage of euros equal to 500 million.
◦ there is a surplus of euros equal to 300 million.
◦ there is a shortage of euros equal to 200 million.
◦ there is a surplus of euros equal to 700 million.

Question 2

Figure 19-8










Refer to Figure 19-8. The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. Speculators expect that the value of the euro will rise and this shifts the demand curve for euro to D
2. After the shift,


◦ there is a shortage of euros equal to 1,000 million.
◦ there is a surplus of euros equal to 400 million.
◦ there is a shortage of euros equal to 800 million.
◦ there is a surplus of euros equal to 500 million.
Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by faduma on Mar 16, 2019

epscape

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Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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faduma

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Reply #2 on: Mar 16, 2019
Excellent


epscape

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Reply #3 on: Mar 16, 2019
Great! Please up vote :D


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