e equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is 3 trillion a day. If the exchange rate is now 0.60 euros per dollar, then O a. there is a surplus of dollars and the exchange rate falls. O b. there is no change. OC. there is a surplus of dollars and the exchange rate rises. O d. there is a shortage of dollars and the exchange rate falls. O e. there is a shortage of dollars and the exchange rate rises.

e equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is 3 trillion a day. If the exchange rate is now 0.60 euros per dollar, then O a. there is a surplus of dollars and the exchange rate falls. O b. there is no change. OC. there is a surplus of dollars and the exchange rate rises. O d. there is a shortage of dollars and the exchange rate falls. O e. there is a shortage of dollars and the exchange rate rises.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter20: International Finance

Section: Chapter Questions

Problem 2.3P

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