The Demand for the Franconian Franc in the Foreign Exchange

question 149

Multiple Choice

The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 3 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:

• A)decrease by 9,000 francs per period.
• B)increase by 9,000 francs per period.
• C)decrease by 3,000 francs per period.
• D)increase by 3,000 francs per period.

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Definitions:

Organizational Diagnosis

Organizational diagnosis involves analyzing an organization's current state to identify strengths, weaknesses, and areas for improvement, often leading to strategic change.

Resistance To Change

The act of opposing or struggling with modifications or transformations that alter the status quo in an organization or individual life.

Resistance To Change

The opposition or reluctance to modify or abandon traditional practices or to adapt to new ones.

Dramatic Increase

A significant and rapid rise in numbers, magnitude, or extent of a particular phenomenon or metric.