Refer to the Table

question 45

Multiple Choice

$$\begin{array} { c | c | c } \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 0 & 200 & 0 \\\$ 1 & 150 & 40 \\\$ 2 & 100 & 80 \\\$ 3 & 50 & 120 \\\$ 4 & 0 & 160\end{array}$$ Refer to the table.In this market,the equilibrium price

• A) does not exist.
• B) is between $2 and $3.
• C) is greater than $4.
• D) is equal to exactly $2.

---

Definitions:

Home Currency Approach

A method used in international finance where companies evaluate their foreign operations and transactions in their domestic currency.

Cash Inflows

The total amount of money being transferred into a business, typically from operations, investments, and financing activities.

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.

Inflation Rate

The speed of growth in the average price level of goods and services, decreasing the effectiveness of purchasing power.