KSH/€ 125KSH/€ 117KSH/€ IIMII QO Q1 ↑ S D S1

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answerhappygod
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KSH/€ 125KSH/€ 117KSH/€ IIMII QO Q1 ↑ S D S1

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Ksh 125ksh 117ksh Iimii Qo Q1 S D S1 1
Ksh 125ksh 117ksh Iimii Qo Q1 S D S1 1 (272.47 KiB) Viewed 9 times
Kenya trades with the European Union, and there are capitalflows between the two areas. Consider the graph that shows theforeign exchange market in Nairobi, Kenya. The initial equilibriumexchange rate is 125 Kenya shillings per European Euro. This rateis denoted as 125 KSH / € in the graph above. Now suppose that thesupply of the Euro increases such that the rate changes to 117 KSH/ €. Ceteris paribus, which of the following factors can explainthe increase in the supply of the Euro, and the resulting change inthe exchange rate from 125 KSH / € TO 117 KSH / €? A rise in realinterest rates in the Eurozone. A decrease in the consumer priceindex in Kenya. A decrease in the return on savings in Kenya. Afall in the cost of consumption in the Eurozone.
KSH/€ 125KSH/€ 117KSH/€ IIMII QO Q1 ↑ S D S1
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