Figure 15.1: Mexican Pesos per Dollar

-Refer to Figure 15.1. If the market is illustrated by curves S and D₂, the equilibrium exchange rate is

Question

Figure 15.1: Mexican Pesos per Dollar -Refer to Figure 15.1. If the market is illustrated by curves S and D₂, the equilibrium exchange rate is

Quizplus · Accepted Answer

The equilibrium exchange rate is determined by the intersection of the supply and demand curves for currency. In this case, without seeing Figure 15.1, the correct answer typically would be the rate that balances the supply and demand for pesos per dollar or dollars per peso, depending on the context provided. Given the options, "11 pesos per dollar" is a plausible equilibrium rate format for currency exchange, aligning with common ways of expressing such rates.

Figure 15.1: Mexican Pesos Per Dollar