Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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