Illustrate these effects in the market for gourdes

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1. If demand for clothing made in Haiti rises, how does this change affect the world value of the gourde (the Haitian currency)? Illustrate these effects in the market for gourdes.

2. Explain why the supply curve for foreign currency is vertical. Let's say you return from a trip to Mexico with 1,000 pesos. If you decide to exchange these pesos for dollars, does your action shift the supply of pesos?

Reference no: EM131298711

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