1.11 euros

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter28: International Trade And Finance
Section: Chapter Questions
Problem 11SQP
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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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