Answer the question on the basis of the following table,which indicates the dollar price of libras,the currency used in the hypothetical nation of Libra.Assume that a system of freely floating exchange rates is in place. $\begin{array}{c}
\begin{array}{c}
(1)\
\text {Quantity of Libras}\
\underline{\text {Demanded (Billions) }}\
100 \
200 \
300 \
400
\end{array}
\begin{array}{c}
(2)\
\text {Dollar Price}\
\underline{\text {of Libras}}\
\$ 5 \
4\
3\
2
\end{array}
\begin{array}{c}
(3)\
\text {Quantity of Libras}\
\underline{\text {Supplied (Billions)}}\
325 \
200 \
100 \
75
\end{array}
\end{array}$
Refer to the table.The exchange rate is:

Question

Answer the question on the basis of the following table,which indicates the dollar price of libras,the currency used in the hypothetical nation of Libra.Assume that a system of freely floating exchange rates is in place. $\begin{array}{c}
\begin{array}{c}
(1)\
\text {Quantity of Libras}\
\underline{\text {Demanded (Billions) }}\
 100 \
200 \
300 \
400 
\end{array}
\begin{array}{c}
(2)\
\text {Dollar Price}\
\underline{\text {of Libras}}\
\$ 5 \
4\
3\
2
\end{array}
\begin{array}{c}
(3)\
\text {Quantity of Libras}\
\underline{\text {Supplied (Billions)}}\
325 \
200 \
100 \
75
\end{array}
\end{array}$
 Refer to the table.The exchange rate is:

Quizplus · Accepted Answer

The exchange rate is the price of one currency in terms of another currency. In this case, the exchange rate is the price of one libra in terms of dollars. The table shows that the dollar price of libras is $5 when the quantity of libras demanded is 100 billion. This means that the exchange rate is 1 libra for $5, or 0.25 libra for one dollar.

Answer the Question on the Basis of the Following Table,which