Figure 29-1

-Refer to Figure 29-1. Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?

Question

Figure 29-1
 
-Refer to Figure 29-1. Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?

Quizplus · Accepted Answer

When interest rates rise in England, British assets become more attractive, increasing demand for pounds and decreasing demand for dollars, causing the supply curve for dollars to shift right and the demand curve for dollars to shift left.

Figure 29-1 -Refer to Figure 29-1. Which of the Events Below Cause