The graph below Illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. Price of Canadian dollars in U.S. dollars 1.04 1.02 1.00 0.98 (Q) 0.96 0 25 50 75 100 125 150 Quantity of Canadian dollars (billions) BM = Tools D2 a. What is the quantity of dollars exchanged, given D, and S₁? billon. b. What is this quantity worth in U.S. dollars? Note: Round your answer to 1 decimal place. billon In the U.S. c. If the demand for the dollar increases by 50, draw in the new demand curve labelled D₂ Note: 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? billion. f. What is this quantity worth in U.S. dollars? Note: Round your answer to 1 decimal place. billion in the U.S
The graph below Illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. Price of Canadian dollars in U.S. dollars 1.04 1.02 1.00 0.98 (Q) 0.96 0 25 50 75 100 125 150 Quantity of Canadian dollars (billions) BM = Tools D2 a. What is the quantity of dollars exchanged, given D, and S₁? billon. b. What is this quantity worth in U.S. dollars? Note: Round your answer to 1 decimal place. billon In the U.S. c. If the demand for the dollar increases by 50, draw in the new demand curve labelled D₂ Note: 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? billion. f. What is this quantity worth in U.S. dollars? Note: Round your answer to 1 decimal place. billion in the U.S
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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