1.11 euros

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 9SCQ: Is a country for which imports and exports comprise a large fraction of the GDP more likely to adopt...
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Use the following table, which shows the supply and demand schedules for the euro, to answer the next questlon.
Quantity of Euros
Quantity of Euros
Supplied
Price
Demanded
400
$1.10
100
360
1.00
200
300
0.90
300
286
0.80
400
267
0.70
500
Under a flexible exchange rate system, what wll be the euro rate of exchange for one U.S. dollar?
Multiple Choice
0.95 euro
1.00 euros
1.11 euros
1.23 euros
Transcribed Image Text:Use the following table, which shows the supply and demand schedules for the euro, to answer the next questlon. Quantity of Euros Quantity of Euros Supplied Price Demanded 400 $1.10 100 360 1.00 200 300 0.90 300 286 0.80 400 267 0.70 500 Under a flexible exchange rate system, what wll be the euro rate of exchange for one U.S. dollar? Multiple Choice 0.95 euro 1.00 euros 1.11 euros 1.23 euros
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