The Figure Given Below Depicts the Demand and Supply of Brazilian

question 68

Multiple Choice

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 36.1 In the figure:
D₁ and D₂: Demand for Brazilian reals
S₁ and S₂: Supply of Brazilian reals
Refer to Figure 36.1.Determine the equilibrium exchange rate and equilibrium quantity of Brazilian reals, if D₁ and S₁ are the relevant demand and supply curves for Brazilian reals in this market.

• A)10 pesos per real and a quantity of 150 reals
• B)6 pesos per real and a quantity of 250 reals
• C)8 pesos per real and a quantity of 150 reals
• D)8 pesos per real and a quantity of 250 reals
• E)6 pesos per real and a quantity of 200 reals

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Definitions:

Pruning

The process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neural transmissions.

Assimilation

The cognitive process of integrating new information into existing frameworks or understanding.

Initial Understanding

The basic or preliminary comprehension of a subject or situation before deeper knowledge is acquired.

Conservation

The principle (which Piaget believed to be a part of concrete operational reasoning) that properties such as mass, volume, and number remain the same despite changes in the forms of objects.