a. What is the cost of the car in euros? € o. Suppose the exchange rate changes to US$1= €0.75. What is the new euro cost of the car? € c. At the new exchange rate, the quantity of U.S. cars demanded by those holding euros will likely (Click to select) (Click to select) remain the same increase decrease

Figure 2.3: S$i£ 2.20 2.00 1.90 The Market for British Pounds D E Q5 Q4 Q₁ B Q₂ S₁(£) D₂(£) D₁ (£) D3(£) Q3 Quantities of pound Refer to Figure 2.3. Suppose that the spot exchange rate of British pound is $2.00 per pound. Suppose that the U.S. decreases its taste for imports from the Under a flexible exchange rate system, the Bank of England will: Let the British pound appreciate Let the British pound depreciate Sell pounds and buy dollars in foreign exchange market Sell dollars and buy pounds in foreign exchange market

7) Suppose that as a policy maker you increased money supply to increase in-vestment to decrease unemployment level in the country. However, at the end of the period it is revealed that the policy increased the unemployment level in the country. Explain this unexpected outcome by considering policy's implications in the foreign exchange market?

Options are gain or loss. Note : don't use chat gp8