Suppose that the demand for dollars curve in the foreign, Business Economics

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Suppose that the demand for dollars curve in the foreign

Suppose that the demand for dollars curve in the foreign exchange market is QD=100-e(Peso/$) and the supply for dollars curve is given by QS=3e(Peso/$). What is the equilibrium exchange rate? Suppose that the Fed fixes the exchange rate at e(Peso/$) = 40. What is the size of its exchange rate intervention?

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Business Economics: Suppose that the demand for dollars curve in the foreign

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