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Figure 17-4 in Figure 17-4, the Equilibrium Price of Dominican

Question 14

Multiple Choice

Figure 17-4 Figure 17-4 In Figure 17-4, the equilibrium price of Dominican pesos is P<sub>e</sub>. If the Dominican Republic government fixes the price of foreign currency in terms of domestic currency at P<sub>f</sub> (below equilibrium) , what does the quantity Q<sub>d</sub> through Q<sub>s</sub> represent? A) the quantity of Dominican exports B) a shortage of foreign exchange C) the quantity of Dominican imports D) a surplus of foreign exchange In Figure 17-4, the equilibrium price of Dominican pesos is Pe. If the Dominican Republic government fixes the price of foreign currency in terms of domestic currency at Pf (below equilibrium) , what does the quantity Qd through Qs represent?


A) the quantity of Dominican exports
B) a shortage of foreign exchange
C) the quantity of Dominican imports
D) a surplus of foreign exchange

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