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Author Question: Fixed and Floating Exchange RatesExchange rate ($/)Quantity of euros () demandedQuantity of euros () ... (Read 36 times)

gboileau

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on: Nov 23, 2022

Question 1

Purchasing Power Parity

If the average price of a Starbucks Venti Caffe Mocha is $4.50 in the United States and is 120 baht in Thailand, then the implied exchange rate between the Thai baht and the U.S. dollar is ________ baht per dollar.
◦ 4.50
◦ 26.67
◦ 120
◦ 0.04

Question 2

Fixed and Floating Exchange Rates


Exchange rate ($/€)Quantity of            euros (€) demandedQuantity of           euros (€) supplied
1.40​300​440​
1.15​370​370​
0.90​440​300​
Quantities represent millions of euros traded per day.
Refer to the data in the table. The equilibrium exchange rate is $1.15/euro. Suppose the European Central Bank pegs its currency at $1.40/euro. At the pegged exchange rate, there is a  ________.
◦ shortage of euros equal to 300 million
◦ shortage of euros equal to 70 million
◦ surplus of euros equal to 440 million
◦ surplus of euros equal to 140 million
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by gboileau on Nov 23, 2022

Sha

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Reply #1 on: Nov 23, 2022
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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gboileau

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Reply 2 on: Nov 23, 2022
YES! Correct, THANKS for helping me on my review

sultansheikh

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Reply 3 on: Yesterday
:D TYSM

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