10 See the Table below to answer this question.3. The 4 countries peg their currency to the U.S. $. Which of the 4 countries is bestpositioned to maintain the peg.A. Country 1B. Country 2C. Country 3D. Country 4TableForeign Reserves$50,000,000,000$37,500,000,000$91,000,000,000GDP$1,000,000,000,000$750,000,000,000$1,300,000,000,000$350,000,000,000Foreign Direct Investment$80,000,000,000$112,500,000,000$260,000,000,000$87,500,000,000Country 1Country 2Country 3Country 4$17,500,000,000

Reserves as %age of GDP = reserves / GDp * 100 FDI as %age of GDP = FDI / GDP * 100

Answered: 3. The 4 countries peg their currency…

3. The 4 countries peg their currency to the U.S. $. Which of the 4 countries is best positioned to maintain the peg. A. Country 1 B. Country 2 C. Country 3 D. Country 4 nle

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 8SCQ: A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise...

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