The Table Shows the Supply and Demand Schedules for the
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question 45

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity of Euros } \\\text { Supplied }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity of Euros } \\\text { Demanded }\end{array} \\\hline 400 & \$ 1.10 & 100 \\\hline 360 & 1.00 & 200 \\\hline 300 & 0.90 & 300 \\\hline 286 & 0.80 & 400 \\\hline 287 & 0.70 & 500 \\\hline\end{array}$$ The table shows the supply and demand schedules for the European euro. Under a ?exible exchange-rate system, what will be the euro rate of exchange for one U.S. dollar?

• A) 0.95 euro
• B) 1.00 euros
• C) 1.11 euros
• D) 1.23 euros

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