In June 2008, the dollar bought 1.6 Brazilian reals and in October, the dollar bought 2.4 reals. This resulted in a
A) a movement upward along the supply curve for dollars.
B) a movement downward along the supply curve for dollars.
C) rightward shift in the supply curve for dollars.
D) leftward shift in the supply curve for dollars.

Question

Quizplus · Accepted Answer

The increase in the number of Brazilian reals that one dollar can buy from 1.6 to 2.4 indicates a higher demand for dollars or a higher value of the dollar relative to the real. This is typically represented by a movement upward along the supply curve for dollars, as it reflects a change in the quantity supplied at the existing price, not a shift in the supply curve itself.

In June 2008, the Dollar Bought 1