Krugman's Economics For The Ap® Course
Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
Question
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Chapter 8R, Problem 11MCQ
To determine

To find:

Fact for the exchange rate of bern.

Expert Solution & Answer
Check Mark

Answer to Problem 11MCQ

Option A is correct.

Explanation of Solution

Option A is correct.

It takes $1.50 to buy a bern.

On the y axis, rate of exchange is mentioned and on x-axis, quantity of berns is mention. So, at equilibrium, $1.50 is used to buy a bern.

Option B is incorrect.

Option C is incorrect.

Option D is incorrect.

Option E is incorrect.

Economics Concept Introduction

The exchange rate of a national currency is determined by its relative demand and supply in the foreign exchange market. For example, the price of Yuan in U.S.

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