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The Figure Above Shows Demand Curves for Australian Dollars in the Foreign

Question 41

Multiple Choice

  The figure above shows demand curves for Australian dollars in the foreign exchange market. -Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D<sub>2</sub>? A)  A rise in the expected future Australian exchange rate. B)  A fall in foreign interest rates. C)  A rise in the Australian exchange rate. D)  A rise in the Australian interest rate. E)  A fall in the Australian exchange rate. The figure above shows demand curves for Australian dollars in the foreign exchange market.
-Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?


A) A rise in the expected future Australian exchange rate.
B) A fall in foreign interest rates.
C) A rise in the Australian exchange rate.
D) A rise in the Australian interest rate.
E) A fall in the Australian exchange rate.

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