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 demand curves shown for Brazilian reals are based on:
Definitions:
Language
A complex system of communication that uses sounds, symbols, or gestures in a structured and conventional way to express ideas and emotions.
Heteronomous Morality
The stage of moral development in which children view rules as fixed and unchangeable, imposed by authority.
Autonomous Morality
The stage in child development where children start to understand that rules and laws are created for people's mutual benefit and can be negotiated.
Preconventional Moral Reasoning
A stage in Kohlberg's theory of moral development characterized by decision-making based on direct consequences to oneself, such as punishment or reward.
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