Figure36-8
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Which of the graphs in Figure 36-8 represents the effects of a currency appreciation?

Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies

What will be an ideal response?

Suppose that a specific tax of $3 is imposed on producers of bread. The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P. What is the change in the equilibrium quantity of bread induced by the tax incidence?

A) Equilibrium quantity decreased by three units. B) Equilibrium quantity increased by two units. C) Equilibrium quantity decreased by one unit. D) Equilibrium quantity increased by one unit.