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 decrease in the quantity of dollars supplied.
B) an increase in the quantity of dollars supplied.
C) a rightward shift in the supply curve of dollars.
D) a depreciation of the dollar.

Question

Quizplus · Accepted Answer

The increase from 1.6 to 2.4 reals per dollar indicates that more reals could be obtained for each dollar, which would typically lead to an increase in the quantity of dollars supplied as sellers are incentivized by the higher amount of reals they can get per dollar.

In June 2008, the Dollar Bought 1