-In the figure above, the equilibrium exchange rate is: $1 U.S. equals

Question

Quizplus · Accepted Answer

The equilibrium exchange rate is the rate at which the supply of a currency equals the demand for that currency. In the figure, the supply of Canadian dollars is represented by the upward-sloping line, and the demand for Canadian dollars is represented by the downward-sloping line. The equilibrium exchange rate is the point where these two lines intersect, which is at $1 U.S. equals $1.50 Canadian.

-In the Figure Above, the Equilibrium Exchange Rate Is: $1