In 2010, Eyjafjallajokull (a volcano in Iceland) erupted and created a dangerous ash cloud over Northern Europe. This led to major travel disruptions, and tourism to Iceland immediately fell by 30%. Which of the following would have happened in the market for the Iceland krona?
A) An increase in the demand for the Icelandic krona
B) A ban on the use of the Icelandic krona
C) No change in the demand for the Icelandic krona
D) A decrease in the demand for the Icelandic krona
Correct Answer:
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