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Refer to the figure below to answer the following question.
Figure 7.2.4
-Refer to Figure 7.2.4. The graph shows the demand for shoes in Brazil, DB, the supply of shoes produced in Brazil, SB, and the market equilibrium in Brazil when it does not trade internationally. If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally, producer surplus in Brazil ________ and consumer surplus in Brazil ________.
Exchange Rate
The Exchange Rate is the price at which one currency can be exchanged for another, affecting international trade and investments.
Inflation Rate
The speed at which the overall price levels for products and services increase, leading to a decrease in buying power.
Indirect Exchange Rate
An exchange rate quoted as the foreign currency per unit of the domestic currency, which is the reciprocal of the more common direct exchange rate format.
Canadian Dollar
The currency of Canada, represented by the symbol CAD in the foreign exchange market.
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