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1.0/ 1.05 1.03 Price of Canadian dollars in U.S. dollars .01 0.99 D 0.97 0.95 0 20 40 60 80 100 120 140 160 180
1.0/ 1.05 1.03 Price of Canadian dollars in U.S. dollars .01 0.99 D 0.97 0.95 0 20 40 60 80 100 120 140 160 180 Quantity of Canadian dollars (billions) a. What is the quantity of dollars exchanged, given D, and $1? 60 billion. b. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. $ 59.4 billion in the U.S. c.If the demand for the dollar increases by 60, draw in the new demand curve labelled D2. On the graph above, plot only the endpoints of the curve . d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible? quantity of Canadian $ exchanged: $ 90 billion. Suppose instead that the dollar is fixed at the original value. e. As a result of the change in (c), what is the quantity of Canadian dollars exchanged? |89.1 billion. f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. $ 91.8 billion in the U.S
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