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describe the concept of equilibrium exchange rate and by Using figure : determine, (a). The equilibrium exchange rate between the dollar and the pound sterling
describe the concept of equilibrium exchange rate and by Using figure : determine, (a). The equilibrium exchange rate between the dollar and the pound sterling and the equilibrium quantity of pounds with supply curves(both) under a flexible exchange rate system.(b) If the US wanted to maintain the exchange rate at $3 = pound 1 with supply curve (lower, which is at point A) , how much pound reserves would the US central bank gain or lose per day?
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