Exhibit 18-8
-Exhibit 18-8 shows the market for euros in the US.Initially the demand for euros is represented by D₁ and the supply of euros is represented by S₁.Equilibrium in the market for euros is at point A.In response to an increase in the income of US consumers the equilibrium will be at point _____.

Question

Exhibit 18-8 Exhibit 18-8 -Exhibit 18-8 shows the market for euros in the US.Initially the demand for euros is represented by D<sub>1</sub> and the supply of euros is represented by S<sub>1</sub>.Equilibrium in the market for euros is at point A.In response to an increase in the income of US consumers the equilibrium will be at point _____. A) A B) B C) C D) D E) E

Exhibit 18-8 -Exhibit 18-8 shows the market for euros in the US.Initially the demand for euros is represented by D<sub>1</sub> and the supply of euros is represented by S<sub>1</sub>.Equilibrium in the market for euros is at point A.In response to an increase in the income of US consumers the equilibrium will be at point _____. A) A B) B C) C D) D E) E

-Exhibit 18-8 shows the market for euros in the US.Initially the demand for euros is represented by D₁ and the supply of euros is represented by S₁.Equilibrium in the market for euros is at point A.In response to an increase in the income of US consumers the equilibrium will be at point _____.

Quizplus · Accepted Answer

An increase in the income of US consumers would likely increase the demand for euros as they may want to purchase more European goods and services. This would shift the demand curve for euros to the right, moving the equilibrium to point D.

Exhibit 18-8 -Exhibit 18-8 Shows the Market for Euros in the US.Initially