Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. At the pegged exchange rate,
A) there is a surplus of pounds equal to 600 million.
B) there is a shortage of pounds equal to 200 million.
C) there is a surplus of pounds equal to 400 million.
D) there is a shortage of pounds equal to 400 million.
E) there is a shortage of pounds equal to 600 million.
C
Economics
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What two factors need to increase in order to increase potential output in an economy?
What will be an ideal response?
Economics
An increase in the price level leads to a
A) leftward shift in the demand for money curve. B) rightward shift of the supply of money curve. C) movement downward along the demand for money curve and no shift of the curve. D) movement upward along the demand for money curve and no shift of the curve. E) rightward shift in the demand for money curve.
Economics