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The figure given below shows the demand curves for dollars arising out of Thai demand for U.S. goods and services and the supply of dollars arising out of the U.S. demand for Thai goods, services, and financial assets. D1 and S1 are the original demand and supply curves.
Figure 18.2
-Assume that the foreign exchange market is initially at equilibrium when the demand and supply curves are D1 and S1 respectively. When the demand curve shifts from D1 to D2, the Thai government intervenes to restore the original equilibrium. If Figure 18.2 describes these changes, which of the following will be true?
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Future Expectations
Future expectations refer to the anticipations or outlooks regarding what may happen or what one may achieve in the future.
Discrepancy Expectations
The gap between anticipated outcomes and actual results, often leading to dissatisfaction or reevaluation.
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