Exchange Rates The following is a summary of the supply and demand schedule for U.S. dollars. Answer the following questions based on table 1.1. Table 1.1 Exchange rate (yen per $) 100 110 120 130 140 150 Quantity Supplied in U.S. $'s (Billions) 20 30 40 50 60 70 Quantity Demanded in U.S. $'s (Billions) 60 50 40 30 20 10 (a) Graph the supply and demand curves. What is the equilibrium exchange rate (yen per dollar)? (b) What is the equilibrium exchange rate in dollars per yen (how many dollars do you get for a yen)? (c) Which would you prefer to have if your bank will exchange yen for dollars at the equilibrium exchange rate you found in question (a), $5,000 dollars or 500,000 yen? Explain. d) If the exchange rate is fixed by the U.S. government at 150 yen per U.S. dollar is there an excess supply or excess demand? (e) Would this policy stimulate imports compared with the equilibrium exchange rate? Explain. (f) Suppose there is a new product made here in the U.S. that Japanese consumers living in Japan just have to have. How will this change the equilibrium exchange rate you found in question (a) --increase, decrease, remain the same? Explain