The figure given below shows the demand curves for dollars arising out of Thai demand for U.S. goods and services and the supply of dollars arising out of the U.S. demand for Thai goods, services, and financial assets. D1 and S1 are the original demand and supply curves.
Figure 18.1

-Refer to Figure 18.1. The original equilibrium exchange rate is _____.
A) E
B) G
C) A
D) D
E) B

Question

The figure given below shows the demand curves for dollars arising out of Thai demand for U.S. goods and services and the supply of dollars arising out of the U.S. demand for Thai goods, services, and financial assets. D1 and S1 are the original demand and supply curves.
Figure 18.1
 
-Refer to Figure 18.1. The original equilibrium exchange rate is _____.
A) E 
B) G 
C) A 
D) D 
E) B

Quizplus · Accepted Answer

The original equilibrium exchange rate is typically indicated by the intersection of the supply and demand curves for a currency, which is often labeled as point E in economic diagrams.

The Figure Given Below Shows the Demand Curves for Dollars