The figure below depicts the international market for the Canadian dollar (priced in terms of the US dollar). a) Suppose that the Bank of Canada fixes the values of the Canadian dollar at $0.82. What is the resulting shortage/surplus$
b) Assuming that the market is in equilibrium, suppose that both demand and supply decreases by $20B. What is the new equilibrium price and quantity?

Question

The figure below depicts the international market for the Canadian dollar (priced in terms of the US dollar).  a) Suppose that the Bank of Canada fixes the values of the Canadian dollar at $0.82. What is the resulting shortage/surplus$
b) Assuming that the market is in equilibrium, suppose that both demand and supply decreases by $20B. What is the new equilibrium price and quantity?

Quizplus · Accepted Answer

The Answer of The figure below depicts the international market for the Canadian dollar (priced in terms of the US dollar).  a) Suppose that the Bank of Canada fixes the values of the Canadian dollar at $0.82. What is the resulting shortage/surplus$
b) Assuming that the market is in equilibrium, suppose that both demand and supply decreases by $20B. What is the new equilibrium price and quantity?

The Figure Below Depicts the International Market for the Canadian