The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 1.20 Brazilian reals per dollar
A) there will be a shortage of dollars.
B) $120 billion dollars will be supplied.
C) $40 billion dollars will be demanded.
D) there will be a surplus of dollars.
A
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When the required reserve ratio is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged. b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed. c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the required reserve ratio. d. the size of the money multiplier and the amount of excess reserves change in the same direction as the required reserve ratio. e. neither the money multiplier nor the amount of excess reserves change.
If demand is very inelastic,
A. The demand curve will be very steep. B. The demand curve will be horizontal. C. The demand curve is upward-sloping. D. The demand curve will be very flat.