-Use the above figure. A leftward shift of the supply curve, ceteris paribus, would result in
A) euro depreciation.
B) dollar appreciation.
C) dollar depreciation.
D) increasing the equilibrium quantity of euros.

Question

-Use the above figure. A leftward shift of the supply curve, ceteris paribus, would result in
A) euro depreciation. 
B) dollar appreciation. 
C) dollar depreciation. 
D) increasing the equilibrium quantity of euros.

Quizplus · Accepted Answer

A leftward shift of the supply curve indicates a decrease in the supply of euros, which would lead to an increase in the value of the euro relative to the dollar, resulting in dollar depreciation.

-Use the Above Figure