**Question 4**Consider the following two figures.**Figure Descriptions:**- **Left Figure: Japanese Yen per 1 US Dollar Graph** - Timeframe: 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:48 UTC - Exchange Rate Range: - Highest: 107.07591 - Lowest: 104.36040 - The graph shows fluctuations with noticeable rises and falls, indicating variability in the exchange rate over the observed period.- **Right Figure: Danish Krone per 1 Euro Graph** - Timeframe: 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:10 UTC - Exchange Rate Range: - Highest observed: 7.468491 - Lowest observed: 7.4262613 - The graph shows considerably less fluctuation compared to the Yen/Dollar graph, with relatively stable exchange rates, aside from a single spike.**Question:**Which of the following statements is correct?- A. The left figure describes a fixed exchange rate; the right figure describes a fixed exchange rate- B. The left figure describes a flexible exchange rate; the right figure describes a flexible exchange rate- C. The left figure describes a fixed exchange rate; the right figure describes a flexible exchange rate- D. The left figure describes a flexible exchange rate; the right figure describes a fixed exchange rate

The fixed and flexible exchange rate is the rate at which one currency is exchanged from another. The exchange rate would result in the important factor which would affect the net exports. The fixed and flexible exchange rates are the major exchange rate system which would affect the real GDP. The fixed and flexible rate system would involve a major role in the government.The left figure shows more fluctuation of the exchange rate between two currencies thus the figure shows flexible exchange rate. The right figure shows that the exchange rate would be much more stable as a result the right figure shows fixed exchange rate. Thus, the option d is correct. The left figure does not show a fixed exchange rate thus option a is incorrect. The right figure has a straight line and does not have a flexible exchange rate thus option b is incorrect. The right figure has a straight line and does not have a flexible exchange rate thus option c is incorrect.

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Consider the following two figures. Japanese Yen per 1 US Dollar Graph Danish Krone per 1 Euro Graph 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:48 UTC 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:10 UTC 107.07591 7.4648491 39703 7.4552022 105 105.03928 7.435908 104.36040 7.4262613 Mar 12 Mar 19 Mar 26 Apr 2 Apr 9 Mar 12 Mar 19 Mar 26 Apr 2 Apr 9 Which of the following statements is correct?

Consider the following two figures. Japanese Yen per 1 US Dollar Graph Danish Krone per 1 Euro Graph 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:48 UTC 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:10 UTC 107.07591 7.4648491 39703 7.4552022 105 105.03928 7.435908 104.36040 7.4262613 Mar 12 Mar 19 Mar 26 Apr 2 Apr 9 Mar 12 Mar 19 Mar 26 Apr 2 Apr 9 Which of the following statements is correct?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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