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The Graph Below Shows the Supply and Demand Curves for Dollars

Question 88

Multiple Choice

The graph below shows the supply and demand curves for dollars in the pound/dollar market. The graph below shows the supply and demand curves for dollars in the pound/dollar market. Refer to the graph above. Assume that D<sub>1</sub> and S<sub>1</sub> are the initial demand for and supply of dollars. The exchange rate will be: A) $5 equals 1 pound B) $4 equals 1 pound C) $1 equals 5 pounds D) $0.20 equals 1 pound Refer to the graph above. Assume that D1 and S1 are the initial demand for and supply of dollars. The exchange rate will be:


A) $5 equals 1 pound
B) $4 equals 1 pound
C) $1 equals 5 pounds
D) $0.20 equals 1 pound

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