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The Figure Above Shows Demand Curves for Dollars in the Foreign

Question 207

Multiple Choice

   The figure above shows demand curves for dollars in the foreign exchange market. -Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D₀ to D₁? A)  a rise in the U.S.exchange rate B)  a fall in the U.S.exchange rate C)  a rise in the U.S.interest rate D)  a fall in expected future U.S.exchange rate E)  a rise in foreign interest rates
The figure above shows demand curves for dollars in the foreign exchange market.
-Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D₀ to D₁?


A) a rise in the U.S.exchange rate
B) a fall in the U.S.exchange rate
C) a rise in the U.S.interest rate
D) a fall in expected future U.S.exchange rate
E) a rise in foreign interest rates

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