Implications of a Revised Peg The country of Zapakar has much international trade with the United States and other countries, as it has no significant barriers on trade or capital flows. Many firms in Zapakar export common products (denominated in Zapakar’s currency, called zaps) that serve as substitutes for products produced in the United States and many other countries. The zap has been pegged at 8 zaps for the last several years. Yesterday, the government of Zapakar reset the zap’s currency value so that it is now pegged at 7 zaps
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