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Suppose the demand for dollars (in exchange for euro) is given by D = 220 + 0.010 YFor - 475 For + 900 r -

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Suppose the demand for dollars (in exchange for euro) is given by D = 220 + 0.010 YFor - 475 For + 900 r - 32 8nom The supply of dollars is given by. S = 100 + 0.026 Y + 300 For -640 r + 22 8nom Suppose output and the real interest rate in the domestic country and the foreign country are: Y =7,750, YFor = 10.500, r = 0.050.For = 0.060. Calculate the equilibrium value of the nominal exchange rate. (In your calculations, carry out your intermediate steps to three decimals and round your answer to three decimals). enam

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