The figure below depicts the supply of U.S.dollars in the foreign currency exchange market.
A shift from D₁ to D₃ in the above figure could have been caused by a(n) :
A) decrease in the exchange rate from £1.2/$1 to £1.1/$1.
B) increase in the exchange rate from £1.1/$1 to £1.2/$1.
C) increase in demand for U.S.assets relative to British assets.
D) increase in U.S.interest rates relative to British interest rates.
E) decrease in British consumers' demand for U.S.goods.
Correct Answer:
Verified
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