If the dollars per pound exchange rate falls,there is a(n)
A) rightward movement along a single supply of pounds curve
B) leftward movement along a single supply of pounds curve
C) leftward shift of the supply of pounds curve
D) rightward shift of the U.S.supply of pounds curve
E) tendency for the U.S.supply of pounds curve to become steeper

Question

Quizplus · Accepted Answer

A fall in the exchange rate means that fewer dollars are needed to buy a pound, which decreases the price of pounds in terms of dollars. This results in a leftward movement along the supply curve as suppliers are less willing to supply pounds at the lower exchange rate.

If the Dollars Per Pound Exchange Rate Falls,there Is A(n)