Solved

The Figure Below Depicts the Supply of U

Question 51

Multiple Choice

The figure below depicts the supply of U.S. dollars in the foreign currency exchange market. The figure below depicts the supply of U.S. dollars in the foreign currency exchange market.   A shift from D<sub>1</sub> to D<sub>3</sub> in the above figure could have been caused by an)  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. A shift from D1 to D3 in the above figure could have been caused by an)


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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents