The figure below depicts the supply of U.S. dollars in the foreign currency exchange market.
A shift from D1 to D3 in the above figure could have been caused by:
A) a decrease in the exchange rate from £1.2/$1 to £1.1/$1.
B) an increase in the exchange rate from £1.1/$1 to £1.2/$1.
C) an increase in demand for U.S. assets relative to British assets.
D) an increase in U.S. interest rates relative to British interest rates.
E) a decrease in British consumers' demand for U.S. goods.
Correct Answer:
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