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Suppose that gold and silver are used to settle international balance of payments accounts. The U.S. dollar is pegged to gold at $25 per ounce.
Suppose that gold and silver are used to settle international balance of payments accounts. The U.S. dollar is pegged to gold at $25 per ounce. The euro is pegged to gold 35 per ounce and is pegged to silver at 7 per ounce. If the Japanese yen is pegged to silver at 600 per ounce, what is the /$ exchange rate?
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