The figure given below illustrates the market for British pounds. D£ and S£ are the demand and supply curves of the British pounds respectively.
Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?
A) The U.S.importers
B) The British importers
C) The British exporters
D) The import-competing producers in the U.K.
Correct Answer:
Verified
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