4. Exchange rate crisis The following graph shows the market for euros in terms of the Thai baht. The market is initially in equilibrium at 1 baht per euro and 30 billion euros traded per day. Suppose the baht falls in value, causing investors to sell their baht-denominated assets and to sell baht for euros in order to buy eurodenominated assets. As a result, the demand for euros shifts to the right, from D0 to D1. (?) If Thailand wants to maintain a fixed exchange rate of 1 baht per euro, it should euros in the foreign exchange market. To be successful, this policy would have to euros by billion euros at any given exchange rate. If Thailand wants to maintain a fixed exchange rate of 1 baht per euro, it should euros in the foreign exchange market. To be successful, this policy would have to euros by billion euros at any given exchange rate. If investors believe the baht is going to be as a result of the change in demand, a speculative attack may occur. True or False: In the event of a successful speculative attack, foreign investors tend to suffer because Thai businesses are less able to pay their foreign debts. True False