A decrease in U.S. income would have what effect on the foreign exchange market for Israeli shekels?
A) shift its demand curve to the right
B) shift its demand curve to the left
C) shift its supply curve to the right
D) shift its supply curve to the left
E) have no effect on the demand and supply curves

Question

Quizplus · Accepted Answer

A decrease in U.S. income would lead to a decrease in the demand for foreign goods, including those from Israel. This would shift the demand curve for Israeli shekels to the left, as fewer shekels would be needed to purchase Israeli goods.

A Decrease in U