Use the Graph Below to Answer Questions 17- 20

question 25

Multiple Choice

Use the graph below to answer questions 17- 20.
Figure 1.2
-Refer to Figure 1.2.Suppose that the market for euro is initially in equilibrium at point A with the exchange rate $2.00 per euro.Then the supply curve shifts to S₂.If the European central bank wants to fix the exchange rate at $2.00/euro,they have to:

• A) buy euro and sell dollar by the amount of Q₃ - Q₁.
• B) sell euro and buy dollar by the amount of Q₃ - Q₁.
• C) sell only euro by the amount of Q₃ - Q₁ and leave dollar alone.
• D) buy only euro by the amount of Q₃ - Q₁ and leave dollar alone.

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Definitions:

Units

A standard measurement used to quantify physical properties such as length, mass, volume, or time.

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism.

ADP

Adenosine Diphosphate (ADP) is an important organic compound in metabolism that serves as an energy transfer molecule. ADP is converted to ATP, which stores and transfers energy within cells.

Energy Currency

This refers to molecules like adenosine triphosphate (ATP) that store and transfer energy within cells, fueling various biological processes.