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.

Understand the relationship between utility functions and risk preferences.

Understand the unique characteristics of synovial joints compared to fibrous and cartilaginous joints.

Identify and describe the structural components of a synovial joint.

Explain the functions of synovial fluid and its role in joint health.

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Definitions:

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and insurance premiums.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Sales Price

The total cost that a consumer incurs to buy a product or service from a merchant.

Fixed Costs

Expenses that do not change with variations in the level of output or sales, such as rent, salaries, and insurance.