Refer to the graph above, which shows the supply and demand for British pounds. D₁ and S₁ represent the initial demand and supply curves. If there is a large increase in the number of American tourists visiting Britain because of a major event like the Olympics or the World Cup, then what should the British government do if it wants to fix the exchange rate at its initial level?

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The Answer of Refer to the graph above, which shows the supply and demand for British pounds. D₁ and S₁ represent the initial demand and supply curves. If there is a large increase in the number of American tourists visiting Britain because of a major event like the Olympics or the World Cup, then what should the British government do if it wants to fix the exchange rate at its initial level?

Refer to the Graph Above, Which Shows the Supply and Demand