Figure 15.2 Market for the British Pound
-Refer to Figure 15.2.Demand and supply of British Pounds is initially D₀ and S₀.With a system of floating exchange rates, the equilibrium exchange rate is

Question

Figure 15.2 Market for the British Pound -Refer to Figure 15.2.Demand and supply of British Pounds is initially D₀ and S₀.With a system of floating exchange rates, the equilibrium exchange rate is

Quizplus · Accepted Answer

Without the specific details of Figure 15.2, the correct answer cannot be determined directly from the question. However, in a floating exchange rate system, the equilibrium exchange rate is determined by the intersection of the demand and supply curves for a currency. Since the specific details of the curves are not provided, the correct answer typically relies on understanding or seeing the figure in question. Given the options, the answer provided here is based on a common understanding of how floating exchange rates work, not on the specific details of Figure 15.2, which are not provided.