In the market for British Pounds the demand is represented by D0 and supply by S0.If the exchange rate is allowed to rise as high as $4 and the demand for pounds increases to D1,US monetary authorities will need to
A) supply 8 million pounds to the market
B) supply 4 million pounds to the market
C) supply 2 million pounds to the market
D) do nothing
Correct Answer:
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