-In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars__________ and the market moves to point such as __________.
A) decreases; E
B) decreases; A
C) increases; C
D) increases; D

Question

-In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars__________ and the market moves to point such as __________.
A) decreases; E 
B) decreases; A 
C) increases; C 
D) increases; D

Quizplus · Accepted Answer

The Answer of 
-In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars__________ and the market moves to point such as __________.
A) decreases; E 
B) decreases; A 
C) increases; C 
D) increases; D

-In the Figure Above, Suppose the Economy Is Initially at Point