Figure 30-4 -Refer to Figure 30-4. the Equilibrium Exchange Rate Is at Rate

question 231

Multiple Choice

Figure 30-4
-Refer to Figure 30-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D₂. After the shift

• A) there is a shortage of pounds equal to 600 million.
• B) there is a surplus of pounds equal to 400 million.
• C) there is a shortage of pounds equal to 400 million.
• D) there is a surplus of pounds equal to 600 million.
• E) there is a shortage of pounds equal to 200 million.

---

Definitions:

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information, and also involved in memory and speech.

Temporal Lobe

An area of the brain responsible for processing auditory information and is also associated with the encoding of memory and the processing of emotions and language.

Hearing

The sensory process of receiving and perceiving sounds.

Words

Basic units of language or speech that convey meaning and are used to express thoughts or communicate.