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Consider the following demand and the supply curves of foreign currency, where ExR represents the local currency to foreign currency (e.g. USD-GBP) exchange rate. FC
Consider the following demand and the supply curves of foreign currency, where ExR represents the local currency to foreign currency (e.g. USD-GBP) exchange rate. FC represents the units of foreign currency reserves held in the "local" economy. D : ExR = 4 0.075FC , S : ExR = 0.5 + 0.025FC
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
