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Answer the Question on the Basis of the Following Table,which

Question 60

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Answer the question on the basis of the following table,which indicates the dollar price of libras,the currency used in the hypothetical nation of Libra.Assume that a system of freely floating exchange rates is in place. (1) Quantity of LibrasDemanded (Billions)  100200300400(2) Dollar Priceof Libras$5432(3) Quantity of LibrasSupplied (Billions) 32520010075\begin{array}{c}\begin{array}{c}(1) \\\text {Quantity of Libras}\\\underline{\text {Demanded (Billions) }}\\ 100 \\200 \\300 \\400 \end{array}\begin{array}{c}(2) \\\text {Dollar Price}\\\underline{\text {of Libras}}\\\$ 5 \\4\\3\\2\end{array}\begin{array}{c}(3) \\\text {Quantity of Libras}\\\underline{\text {Supplied (Billions) }}\\325 \\200 \\100 \\75\end{array}\end{array}
Refer to the table.The exchange rate is:


A) 4 libras for one dollar.
B) 0.25 libra for one dollar.
C) 0.40 libra for one dollar.
D) 3 libras for one dollar.

Correct Answer:

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