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 D2.
After the shift,
A) there is a surplus of euros equal to 400 million.
B) there is a surplus of euros equal to 500 million.
C) there is a shortage of euros equal to 800 million.
D) there is a shortage of euros equal to 1,000 million.
Question 2
If people assume that future rates of inflation will ________, they are said to have adaptive expectations.
A) not be related to inflation rates of the past B) follow the pattern of inflation rates in the past
C) be higher than inflation rates of the past D) be lower than inflation rates of the past
Four lions take down a cape buffalo in the central Serengeti, Tanzania
Central venous catheter.
Comparison of reactions at equilibrium and steady state
Frederick Law Olmsted and Calvert Vaux, Central Park, New York City.
Apply scissoring between metatarsals and figure-8s on toe joints to mobilize the foot.
A heat exchange vest that uses ice packs for cooling