Question: Consider the situation for Germany described on page 552. Using a figure like Figure 27-3, show the supply and demand for German marks before and

Consider the situation for Germany described on page 552. Using a figure like Figure 27-3, show the supply and demand for German marks before and after the shock. Identify on your figure the excess demand for marks before the appreciation of the mark. Then show how an appreciation of the mark would wipe out the excess demand.

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