I'm still not sure how the whole "college-cram" thing works, but if it might give me some help with the Macro project, I figured it's worth a try.
Here is the problem:
Eastland's currency is called the eastmark, and Westland's currency is called westmark. The supply of and demand for eastmark are given as:
Supply=18,500+8,000e-50,000(Re-Rw) where nominal exchange rate e is measured as westmarks per eastmarks, and Re and Rw are the real inerest rates prevailing in Eastland and Westland.
If Re=Rw=0.10 or 10%, what is market equilibrium value of the eastmark?
Any help, pointer, or anything that you can offer will be greatly appreciated.