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-In the Above Figure, Suppose the Value of the European

Question 142

Multiple Choice

-In the above figure, suppose the value of the European euro is P₁ and U.S. demand for French wine declines. The effect on the franc can be shown by A) an increase in the value of the euro to P₂. B) the excess demand of euro equal to Q₃ - Q₁. C) the decrease in the value of the euro to P₀. D) a shift in the demand for euros from D₁ to D₀, but no change in the value of the euro.
-In the above figure, suppose the value of the European euro is P₁ and U.S. demand for French wine declines. The effect on the franc can be shown by


A) an increase in the value of the euro to P₂.
B) the excess demand of euro equal to Q₃ - Q₁.
C) the decrease in the value of the euro to P₀.
D) a shift in the demand for euros from D₁ to D₀, but no change in the value of the euro.

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