In the table above, the equilibrium exchange rate is shown as
A) $2.50 per pound.
B) $2.00 per pound.
C) $1.50 per pound.
D) $1.00 per pound.

Question

Quizplus · Accepted Answer

In the table, the point where the quantity demanded (Qd) of Euros equals the quantity supplied (Qs) of Euros is at an exchange rate of $1.50 per pound. This is the equilibrium exchange rate where there is no excess demand or supply for Euros in the market.

In the Table Above, the Equilibrium Exchange Rate Is Shown