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 huge increase in the desire of U.S. buyers to consume UK products, and the British government starts buying U.S. dollars in order to fix the exchange rate at the initial level, then the new equilibrium will be at point:

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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 huge increase in the desire of U.S. buyers to consume UK products, and the British government starts buying U.S. dollars in order to fix the exchange rate at the initial level, then the new equilibrium will be at point:

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