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Consider the exchange rate between the Philippine peso and the euro. Suppose the Philippine government and the Eurozone governments agree to fix the exchange rate
Consider the exchange rate between the Philippine peso and the euro. Suppose the Philippine government and the Eurozone governments agree to fix the exchange rate ER at pesos per euro, as shown by the grey line on the following graph. Refer to the following graph when answering the questions that follow. At the official exchange rate of pesos per euro, the euro is Philippine peso is which means that Filipinos pay exports than they would with a freefloating exchange rate. and the for European At the official peso price of euros, there is a market. of euros in the foreign exchange Suppose the governments of the Eurozone and the Philippines reevaluate their currencies so that their official exchange rate is now peso per euro. This action results in Of the euro, the first blue line options are overvalued undervalued the secound blue line have undervalued overvalued the third blue line have more less the fourth blue line have surplus, shortage and the last blue line have depreactiation apprecitation
Consider the exchange rate between the Philippine peso and the euro. Suppose the Philippine government and the Eurozone governments agree to fix the exchange rate ER at pesos per euro, as shown by the grey line on the following graph.
Refer to the following graph when answering the questions that follow.
At the official exchange rate of pesos per euro, the euro is Philippine peso is which means that Filipinos pay exports than they would with a freefloating exchange rate. and the for European
At the official peso price of euros, there is a market. of euros in the foreign exchange
Suppose the governments of the Eurozone and the Philippines reevaluate their currencies so that their official exchange rate is now peso per euro. This action results in Of the euro, the first blue line options are overvalued undervalued the secound blue line have undervalued overvalued the third blue line have more less the fourth blue line have surplus, shortage and the last blue line have depreactiation apprecitation
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