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The Figure Given Below Illustrates the Market for British Pounds

Question 38

Multiple Choice

The figure given below illustrates the market for British pounds. D£ and S£ are the demand and supply curves of the British pounds respectively. The figure given below illustrates the market for British pounds. D<sub>£</sub> and S<sub>£</sub> are the demand and supply curves of the British pounds respectively.   Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound? A) The U.S.importers B) The British importers C) The British exporters D) The import-competing producers in the U.K. Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?


A) The U.S.importers
B) The British importers
C) The British exporters
D) The import-competing producers in the U.K.

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