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Figure: Yuan Foreign Exchange Market for U.S.Dollars
-(Figure: Pound Foreign Exchange Market for Euros) Figure: Pound Foreign Exchange Market for Euros Use the figure to answer the following question: If the British become wealthier and begin importing more goods from the European Union,which shift would occur in the foreign exchange market for euros?

Question

Use the following to answer questions 
Figure: Yuan Foreign Exchange Market for U.S.Dollars 
-(Figure: Pound Foreign Exchange Market for Euros) Figure: Pound Foreign Exchange Market for Euros  Use the figure to answer the following question: If the British become wealthier and begin importing more goods from the European Union,which shift would occur in the foreign exchange market for euros?

Quizplus · Accepted Answer

An increase in imports from the EU by the British would increase the demand for euros, as they need to exchange pounds for euros to pay for the imported goods. This would shift the demand curve for euros to the right in the foreign exchange market.

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