Exhibit 20.1

-Refer to Exhibit 20.1.A shift of the demand curve from D to D' will _____

Question

Exhibit 20.1
 
-Refer to Exhibit 20.1.A shift of the demand curve from D to D' will _____

Quizplus · Accepted Answer

If the demand curve shifts from D to D', it means that at every exchange rate, the quantity of the domestic currency demanded has increased. This leads to an increase in demand for the domestic currency, causing an appreciation in its value. Therefore, the domestic currency will appreciate, and the foreign currency will depreciate.

Exhibit 20.1 -Refer to Exhibit 20.1.A Shift of the Demand Curve from the Demand