Figure 19-4 -Refer to Figure 19-4.The Equilibrium Exchange Rate Is at A,$3/pound.Suppose

question 101

Multiple Choice

Figure 19-4
-Refer to Figure 19-4.The equilibrium exchange rate is at A,$3/pound.Suppose the British government pegs its currency at $4/pound.At the pegged exchange rate

• A)there is a shortage of pounds equal to 600 million.
• B)there is a surplus of pounds equal to 400 million.
• C)there is a shortage of pounds equal to 400 million.
• D)there is a surplus of pounds equal to 600 million.
• E)there is a shortage of pounds equal to 200 million.

---

Definitions:

Neolithic Village

A prehistoric settlement dating to the Neolithic era, characterized by the development of agriculture, settled communities, and the use of stone tools.

Urban Centers

Populated areas characterized by high density of buildings, people, and significant economic, cultural, and social activities.

Writing

The act or process of forming letters, words, or symbols on a surface, typically to communicate ideas or convey information.

Centralized Political Authority

An organizational structure where a single entity or a small group of entities holds the majority of governing power and control, making key decisions that affect the society or nation.