In the table above, a change in the ______ will result in a movement along the demand schedule for pounds.
A) dollar/pound exchange rate
B) rate of interest in the United States
C) per-capita income of Americans
D) level of technology in the United States

Question

Quizplus · Accepted Answer

A change in the dollar/pound exchange rate, which is the price of pounds in terms of dollars, will affect the demand for pounds and result in a movement along the demand schedule for pounds. This is because a change in the exchange rate represents a change in the relative price of pounds compared to dollars, which affects the willingness of consumers and investors to buy or sell pounds. The other variables listed may affect the demand for pounds as well, but they would shift the entire demand schedule for pounds rather than result in a movement along it.

In the Table Above, a Change in the ______ Will