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? 2$ billion. f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. billion in the U.S %24
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? 2$ billion. f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. billion in the U.S %24
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Solve questions: d,e, and f

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

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
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