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Consider the Following Diagram Showing Supply and Demand for Euros

question 26

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Consider the following diagram showing supply and demand for euros in Germany: Consider the following diagram showing supply and demand for euros in Germany:   If the price of euro is currently $P<sub>0</sub>, what does this tell us about the private balance of payments? If the price of euro is currently $P0, what does this tell us about the private balance of payments?


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