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The figure given below depicts the demand and supply of Brazilian reals in the foreign exchange market.Assume that the market operates under a flexible exchange rate regime. Figure 22.1 In the figure:
D1 and D2: Demand for Brazilian reals
S1 and S2: Supply of Brazilian reals
-Refer to Figure 22.1.The supply curves shown for Brazilian reals are based on:
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Alcoholism
A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, affecting physical and mental health.
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