
-Referring to Figure 2.1,the pound per dollar exchange rate starts at 2.00.Assume that an increase in the taste for U.S.imports by U.K.residents leads to a shift in the supply of pounds.How many pounds will the Bank of England need to purchase to restore the exchange of 2.00?
A) 0.2 billion
B) 1 billion
C) 2 billion
D) 4 billion
Correct Answer:
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