a. What is the quantity of dollars exchanged, given D1 and S1? $. billion. b. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. $. billion in the U.S. c.lf the demand for the dollar increases by 60, draw in the new demand curve labelled D2. On the graph above, plot only the endpoints of the curve d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible? quantity of Canadian $ exchanged: $ billion. Suppose instead that the dollar is fived at the original value

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please answer the question with explanation ASAP
The graph below illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions
below.
D.
1.00
Tools
S,
D2
0.98
0.96
0.94
80
120
160
200 240 280
40
Quantity of Canadian dollars (billions)
Price of Canadian dollars in U.S. dollars
Transcribed Image Text:The graph below illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. D. 1.00 Tools S, D2 0.98 0.96 0.94 80 120 160 200 240 280 40 Quantity of Canadian dollars (billions) Price of Canadian dollars in U.S. dollars
a. What is the quantity of dollars exchanged, given D1 and S1?
$.
billion.
b. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place.
$.
billion in the U.S.
c.lf the demand for the dollar increases by 60, draw in the new demand curve labelled D2. On the graph above, plot only the endpoints of the
curve.
d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible?
quantity of Canadian $ exchanged: $
billion.
Suppose instead that the dollar is fixed at the original value.
e. As a result of the change in (c). what is the quantity of Canadian dollars exchanged?
$4
billion.
f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place.
$4
billion in the U.S
Transcribed Image Text:a. What is the quantity of dollars exchanged, given D1 and S1? $. billion. b. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. $. billion in the U.S. c.lf the demand for the dollar increases by 60, draw in the new demand curve labelled D2. On the graph above, plot only the endpoints of the curve. d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible? quantity of Canadian $ exchanged: $ billion. Suppose instead that the dollar is fixed at the original value. e. As a result of the change in (c). what is the quantity of Canadian dollars exchanged? $4 billion. f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. $4 billion in the U.S
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