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dollars in terms of euros P₂ P₁ 4 0 Number of U.S. dollars From the graph, at price P2, supply is greater than the deman
Posted: Sun Jun 05, 2022 3:58 pm
by answerhappygod
- Dollars In Terms Of Euros P P 4 0 Number Of U S Dollars From The Graph At Price P2 Supply Is Greater Than The Deman 1 (285.04 KiB) Viewed 66 times
dollars in terms of euros P₂ P₁ 4 0 Number of U.S. dollars From the graph, at price P2, supply is greater than the demand. How will the price adjust in order to bring the exchange rate to its equilibrium? O in order to bring back the exchange rate to equilibrium, the exports should rise. O The excess supply of dollars raises the price above P2 to bring back the equilibrium exchange rate. The government intervenes to adjust the price of the dollar in order to bring back the equilibrium exchange rate. The surplus created due to the excess supply of dollars can be balanced out by increasing the demand for dollars shifting the demand curve, D. O With the emergence of excess supply of dollars, the price of the dollar falls to price P₁ to bring back the equilibrium. S