The currency for the country of Kuzcotopia is the Quatloo. 1 year ago, the Exchange Rate for the Quatloo to the Dollar was 12 Quatloos for one Dollar. Over the year, investment opportunities have expanded dramatically in Kuzcotopia and as a result investment money from the US has increased significantly to Kuzcotopia. On a graph that shows the supply and demand for the Quatloo versus the dollar, what will happen to the demand for the Quatloo and the quantity of the Quatloo exchanged and the exchange rate. Explain how this change in the exchange rate will impact the trade balance between Kuzcotopia and the United States

Answer rating: 100% (QA)

Demand for Quatloo The demand curve for Quatloos would shift to the right indicating an increase in ... View the full answer