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The Figure Given Below Illustrates the Market for British Pounds

Question 36

Multiple Choice

The figure given below illustrates the market for British pounds. D£ and S£ are the demand and supply curves of the British pounds respectively. The figure given below illustrates the market for British pounds. D<sub>£</sub> and S<sub>£</sub> are the demand and supply curves of the British pounds respectively. At an exchange rate of $2.50 per pound, there is an: A) excess demand for 1 million pounds. B) excess supply of 1 million pounds. C) excess demand for 0.5 million pounds. D) excess supply of 0.5 million pounds. At an exchange rate of $2.50 per pound, there is an:


A) excess demand for 1 million pounds.
B) excess supply of 1 million pounds.
C) excess demand for 0.5 million pounds.
D) excess supply of 0.5 million pounds.

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