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Question
Referring to Figure 2.1, the pound per dollar exchange rate starts at 2.00. Assume that an increase in the taste for U.S. imports by U.K. residents leads to a shift in the supply of pounds. How many pounds will the Bank of England need to purchase to restore the exchange of 2.00?
a. 0.2 billion
b. 1 billion
c. 2 billion
d. 4 billion
Answer
This answer is hidden. It contains 1 characters.
Related questions
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