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An Increase in U

Question 119

Multiple Choice

An increase in U.S.income that increases American demand for all normal goods (including imports from Britain) will shift

A) the U.S.demand curve for foreign exchange to the right, causing an increase in the dollar-per-pound exchange rate
B) the U.S.demand curve for foreign exchange to the left, causing a decrease in the dollar-per-pound exchange rate
C) the U.S.supply curve for foreign exchange to the right, causing a decrease in the dollar-per-pound exchange rate
D) the U.S.supply curve for foreign exchange to the left, causing an increase in the dollar-per-pound exchange rate
E) neither the U.S.demand curve for foreign exchange nor the U.S.supply curve for foreign exchange

Correct Answer: