12 16 20 24 28 32 QUANTITY OF EUROS (Billions) At the official exchange rate of 2.5 dirham per euro, the euro is and the Moroccan dirham is ,which means that Moroccans pay ▼ for European exports than...

Extracted text: 12 16 20 24 28 32 QUANTITY OF EUROS (Billions) At the official exchange rate of 2.5 dirham per euro, the euro is and the Moroccan dirham is ,which means that Moroccans pay ▼ for European exports than they would with a free-floating exchange rate. At the official dirham price of euros, there is a of euros in the foreign exchange market. Suppose the governments in the Eurozone and Morocco agree to change the official exchange rate from 2.5 dirham per euro to 2 dirham per euro. The action represents a of the euro and a v of the dirham. Grade It Now Savel: Continue Continue without saving MacBook Air F8 F7 D00 F4 F6 F5 F3 F2 & %23 %24 8. 9. %24


Extracted text: 3. Fixed exchange rates Consider the exchange rate between the Moroccan dirham and the euro. Suppose the Moroccan government and the Eurozone governments agree to fix the exchange rate at 2.5 dirham per euro, as shown by the grey line on the following graph. Refer to the following graph when answering the questions that follow. 4.0 3.5 Supply of Euros 3.0 2.5 2.0 1.5 Demand for Euros 1.0 0.5 12 16 20 24 28 32 0. 4. 8 QUANTITY OF EUROS (Billions) EXCHANGE RATE (Dirham per euro)