International Economics 14th Edition by Robert Carbaugh

تمرين 7

Table 11.11 shows supply and demand schedules for the British pound. Assume that exchange rates are flexible.
a. The equilibrium exchange rate equals____. At this exchange rate, how many pounds will be purchased, and at what cost in terms of dollars?
b. Suppose the exchange rate is $2 per pound. At this exchange rate, there is an excess (supply/demand) of pounds. This imbalance causes (an increase/a decrease) in the dollar price of the pound, which leads to (a/ an)____ in the quantity of pounds supplied and (a/an)_____ in the quantity of pounds demanded.
c. Suppose the exchange rate is $1 per pound. At this exchange rate, there is an excess (supply/demand) for pounds. This imbalance the price of the pound, which leads to (a/ an)____ in the quantity of pounds supplied and (a/an)_____ in the quantity of pounds demanded.