Multiple Choice
Consider the market in which Canadian dollars are exchanged for British pounds.An increased preference of Canadian consumers for British goods would
A) shift the supply-of-pounds curve to the left and lead to a rise in the exchange rate.
B) shift the demand-for-pounds curve to the right and lead to a rise in the exchange rate.
C) shift the supply-of-pounds curve to the right and lead to a fall in the exchange rate.
D) shift the demand-for-pounds curve to the left and lead to a fall in the exchange rate.
E) lead to a temporary excess supply of British pounds on the international currency market.
Correct Answer:
Verified
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