Return to Exhibit 21.8 in the text and assume the equilibrium exchange is 150 yen per dollar

Question:

Return to Exhibit 21.8 in the text and assume the equilibrium exchange is 150 yen per dollar and the equilibrium quantity is $300 million. Redraw this figure, and place a horizontal line through the equilibrium to represent a fixed Now use this figure to explain why a country would abandon the gold standard?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...