00:01
So here we're talking foreign exchange.
00:02
We've got a market, which is a quantity and an exchange rate.
00:06
We have original demand and original supply.
00:11
And then we have demand is going to the left to demand to, and supply is going out to supply too.
00:21
So the original equilibrium was here.
00:23
The new equilibrium was here, and you can see that we have a big depreciation in the currency.
00:28
Right? so, what has happened? well, the original exchange rate and the new exchange rate are given.
00:36
So we start with, zero point, sorry, let me put pound 0 .5 is equal to $1.
00:46
But if you multiply the, the dollar price of pounds, let's flip it.
00:55
So if i multiply by two, right, what do i get? i get that one pound, the price of a pound is equal to $2...