Figure 32-2 1.8 +Real Exchange Rate 1.6 1.4 1.2 0.8 0.6 0.4 0.2 50 100 150 200 250 300 350 400 Quantity of Dollars O a. shortage of 100 so the real exchange rate will fal. O b. surplus of 100 so the real exchange rate will fall. Oc. surplus of 100 so the real exchange rate will rise. O d. shortage of 100 so the real exchange rate will rise. 1.

Figure 32-2 1.8 +Real Exchange Rate 1.6 1.4 1.2 0.8 0.6 0.4 0.2 50 100 150 200 250 300 350 400 Quantity of Dollars O a. shortage of 100 so the real exchange rate will fal. O b. surplus of 100 so the real exchange rate will fall. Oc. surplus of 100 so the real exchange rate will rise. O d. shortage of 100 so the real exchange rate will rise. 1.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 8PA

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