Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. At the pegged exchange rate,
A) there is a surplus of pounds equal to 600 million.
B) there is a shortage of pounds equal to 200 million.
C) there is a surplus of pounds equal to 400 million.
D) there is a shortage of pounds equal to 400 million.
E) there is a shortage of pounds equal to 600 million.
C
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A firm owned by two or more persons who each bear the responsibilities and unlimited liabilities of the firm is a(n)
a. corporation b. sole proprietorship c. organization that is disallowed under current IRS rules d. partnership e. multinational
Which tax form would you select for a Partnership?
a. Form 1120 b. Form 1120S c. Form 1065 d. Form 1040S
If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that several thousand workers would lose their jobs if there were a reduction in domestic silicon-chip production, they are using the:
A) environmental standards argument. B) infant industry argument. C) job protection argument. D) national security argument.
Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80. An increase in government spending of $1 billion would result in an increase in GDP of:
A. $0.8 billion. B. $1.0 billion. C. $5.0 billion. D. $8.0 billion.