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The Currency Used in the Duchy of Saxony Is the Ducet.The

Question 79

Multiple Choice

The currency used in the Duchy of Saxony is the ducet.The demand for the Saxonian ducet in the foreign exchange market equals 12,000 - 3,000e and the supply of ducets in the foreign exchange market equals 2,000 + 2,000e,where e is the nominal exchange rate expressed in dollars per ducet.The market equilibrium value of the ducet is _________ ducets per dollar or _________ dollars per ducet.


A) 0.143;7
B) 0.4;0.417
C) 2;0.5
D) 0.5;2
E) 7;0.143

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