When the exchange rate (dollars per pound) falls, the
A) quantity of pounds supplied decreases.
B) quantity of pounds supplied increases.
C) supply curve of pounds shifts rightward.
D) supply curve of pounds shifts leftward.

Question

Quizplus · Accepted Answer

When the exchange rate (dollars per pound) falls, it becomes less attractive for holders of pounds to exchange them for dollars, leading to a decrease in the quantity of pounds supplied in the foreign exchange market.

When the Exchange Rate (Dollars Per Pound) Falls, the