-In the figure above, the shift in the supply curve for U.S. dollars from S₀to S₂could occur when

Name: -In the figure above, the shift in the supply curve for U.S. dollars from S 0 to S 2 could occur when
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When foreign interest rates rise, it becomes more attractive for investors to hold foreign currencies, leading to an increase in the supply of U.S. dollars as investors exchange dollars for foreign currencies. This shifts the supply curve for U.S. dollars to the right, from S0 to S2.

-In the Figure Above, the Shift in the Supply Curve