Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2
After the shift,
A) there is a surplus of pounds equal to 400 million.
B) there is a shortage of pounds equal to 600 million.
C) there is a shortage of pounds equal to 200 million.
D) there is a surplus of pounds equal to 600 million.
E) there is a shortage of pounds equal to 400 million.
D
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Which of the following statements about marginal utility is correct?
a. When marginal utility is negative, an increase in the quantity will increase total utility. b. When marginal utility is decreasing, an increase in quantity will decrease total utility. c. When marginal utility is positive, an increase in quantity will decrease total utility. d. When marginal utility is zero, an increase in quantity will leave total utility unchanged. e. When total utility is increasing, marginal utility will be negative.
Between 1978 and 1984, the average yearly change in productivity
A. Was similar to the average yearly change in productivity for 1995-2000. B. Increased arithmetically. C. Increased geometrically. D. Was significantly less than the average yearly change in productivity for 1995-2000.
Which of the following will cause a movement along the supply curve for oil?
A. government tax on oil producers in Texas B. new technology to drill oil from existing oil wells C. an increase in the price of oil D. an increase in the number of oil producers
When total product is decreasing, marginal product is
A. constant. B. positive and increasing. C. negative. D. positive and decreasing.