Question

3. (6 points total) In each figure below, explain what your answer by either drawing a new demand graph and be sure to label your new equilibrium as we did in chapter 3 to show the possibilities. ure below, explain what will happen if the event indicated occurs. Show ing a new demand or supply curve to show the impact of the event in the our new equilibrium. If there are multiple possible outcomes, make a table (2 points) What will happen to the current equilibrium U.S., all else constant? happen to the current equilibrium exchange rate if interest rates 82.50 2.00 Conodion dollars per U.S. dolor $0.50 Exchange 0 08 09 10 11 12 13 Quantity ilions of U.S. dollars per day vinat will happen to the current equilibrium exchange rate if the world demand for U.S. exports decreases, all else constant? $ 2.50 Exchange rate Canadian dollar per U.S. do 0 0.8 0.9 1.0 1.1 1.2 1.3 Quantay Millions of U.5. dollars per day! (2 points) What will happen to the current equilibrium quantity of dollars bought and sold if the expected future exchange rate decreases, all else constant? rote Canadian dollars per U.S. doll $0.50 2008 09 10 11 12 13 Quan lions of U.S. dolors per day!

Answer 1

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