The figure above shows supply curves of Australian dollars in the foreign exchange market.
-Based on the figure above,which of the following factors could lead the supply curve to shift leftward from S₀ to S₁?

Question

Quizplus · Accepted Answer

A fall in foreign interest rates could lead to a decrease in the supply of Australian dollars in the foreign exchange market, as foreign investors may choose to invest their funds elsewhere with higher interest rates. This would shift the supply curve leftward from S₀ to S₁. None of the other options would cause a leftward shift in the supply curve.

The Figure Above Shows Supply Curves of Australian Dollars in the Foreign