Question

At point E in Figure 33-4, how many dollars per year are traded for the equilibrium quantity of pounds?

Short answer

$30$billion pounds are traded for the equilibrium quantity of dollars.

Step-by-step solution

Given Information

Under the adaptable/drifting conversion scale framework, very much like the basic hypothesis of interest and supply, the interest for money bears an opposite relationship with its cost (regarding the homegrown cash of the nation), its stockpile displays an immediate relationship with its cost (concerning the homegrown money).

Explanation

The place of connection of the interest and supply bends yields the balance amount and cost of the unfamiliar money in the unfamiliar trade.

Now, $\pounds 1=\$1.50$from the equilibrium point E figure and the pounds exchanged are £$30$billion per year. At this money value, the interest for and supply of pounds clears the market.

Hence$30$ billion pounds are traded for the equilibrium quantity of dollars.