The Figure Given Below Depicts the Demand and Supply of Brazilian

question 132

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.If the initial equilibrium exchange rate is 6 pesos per real, then other things equal, a decrease in the number of Brazilian tourists to Mexico would:

• A)increase the demand for Brazilian reals from D₂ to D₁ and increase the exchange rate to 8 pesos per real.
• B)decrease the supply of Brazilian reals from S₁ to S₂ and increase the exchange rate to 8 pesos per real.
• C)decrease the supply of Brazilian reals from S₁ to S₂ and increase the exchange rate to 10 pesos per real.
• D)decrease the demand for Brazilian reals from D₁ to D₂ and increase the exchange rate to 8 pesos per real.
• E)decrease the supply of Brazilian reals from S₁ to S₂ and increase the demand for Brazilian reals from D₂ to D₁, thereby changing the exchanging rate to 10 pesos per real.

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Definitions:

Self-kindness

The practice of being gentle, compassionate, and supportive towards oneself during difficult times.

Implicit Self-esteem

An unconscious form of self-esteem which influences thoughts and behaviors without one's awareness.

Explicit Self-esteem

The conscious and deliberate evaluation of one's own worth and value.

Self-compassion

The practice of being kind and understanding to oneself in instances of pain or failure, rather than being harshly judgmental.