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1. Draw a correctly labeled graph of the foreign exchange market for Booklandia's currency the bookie'. The targeted exchange rate is one bookie per US
1. Draw a correctly labeled graph of the foreign exchange market for Booklandia's currency the bookie'. The targeted exchange rate is one bookie per US dollar, with the current equilibrium at 1 bookie per .50 US dollar. 2. The Prime Minister of Booklandia is determined to maintain the targeted exchange rate. Explain three options available to the Prime Minister. 3. Explain to the Prime Minister problems of maintaining a fixed exchange rate. 4. What would be necessary for the nation of Booklandia to do in order to move to a floating exchange rate
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