Refer to the information provided in Table 33.3 below to answer the question(s) that follow.
Table 33.3
-Refer to Table 33.3. Trade will flow in both directions between countries only if the price of the euro is between
A) $.40 and $.50.
B) $1.00 and $2.25.
C) $.60 and $.75.
D) $.44 and $1.00.

Question

Refer to the information provided in Table 33.3 below to answer the question(s) that follow.
Table 33.3 
-Refer to Table 33.3. Trade will flow in both directions between countries only if the price of the euro is between
A) $.40 and $.50. 
B) $1.00 and $2.25. 
C) $.60 and $.75. 
D) $.44 and $1.00.

Quizplus · Accepted Answer

Trade will only flow between countries if the exchange rate is such that the euro can be bought by either country at a price within the range of their domestic currency values. From the table, we can see that the range of exchange rates where trade will occur is when the euro is priced between $.44 and $1.00. Therefore, the correct choice is D.

Refer to the Information Provided in Table 33