Which of the following would lead to a leftward shift in the supply curve for Czech kroner?
A) A decrease in the dollar-krona exchange rate
B) An increase in the Czech Republic's GDP relative to U.S.GDP
C) Expectation that the dollar price of the krona will rise
D) Stronger Czech interest in U.S.audio CDs
E) An increase in the U.S.interest rate relative to the Czech interest rate.

Question

Quizplus · Accepted Answer

If there is an expectation that the dollar price of the krona will rise, suppliers may hold onto their kroner to sell later at a higher price, reducing current supply and causing a leftward shift in the supply curve.

Which of the Following Would Lead to a Leftward Shift