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Suppose the demand for dollars increases by 300 billion at each exchange rate. describe if the increase in demand results from a large purchase by the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. find out the new demand for dollars at each exchange rate and graph the new demand curve. What is the new equilibrium exchange rate,given the original supply of dollars?

Microeconomics, Economics

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