Exhibit 18.1 -Refer to Exhibit 18.1. What Does the Intersection of the the Intersection

question 171

Multiple Choice

Exhibit 18.1

-Refer to Exhibit 18.1. What does the intersection of the demand curve for foreign exchange, D, and the supply curve for foreign exchange, S, determine?

• A) The exchange rate, E.
• B) The exchange rate, E'.
• C) The price of imports in foreign currency.
• D) The price of exports in domestic currency.
• E) The interest rates in various countries.

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