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The Following Questions Refer to the Graph Below

Question 34

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The Following Questions Refer to the graph below. The Following Questions Refer to the graph below.   -If D and S are the relevant demand and supply curves,pegging the exchange rate at r<sup>1</sup> A) Imposes a price floor B) Results in a balance of payments problem C) Will increase British demand for U.S.exports D) Will increase U.S.demand for British imports E) Will do all of the above
-If D and S are the relevant demand and supply curves,pegging the exchange rate at r1


A) Imposes a price floor
B) Results in a balance of payments problem
C) Will increase British demand for U.S.exports
D) Will increase U.S.demand for British imports
E) Will do all of the above

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