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Refer to the Information Provided in Figure 19

Question 231

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Refer to the information provided in Figure 19.4 below to answer the questions that follow. Refer to the information provided in Figure 19.4 below to answer the questions that follow.   Figure 19.4 -Refer to Figure 19.4. The demand and supply of pounds are D<sub>2</sub> and S<sub>2</sub>. An increase in British demand for U.S. exports, ceteris paribus, could A)  increase the exchange rate ($/pound)  to $2.50. B)  decrease the exchange rate ($/pound)  to $1.50. C)  decrease the equilibrium quantity from 400 to 300 pounds. D)  increase the demand for pounds from D<sub>2</sub> to D<sub>1</sub>. Figure 19.4
-Refer to Figure 19.4. The demand and supply of pounds are D2 and S2. An increase in British demand for U.S. exports, ceteris paribus, could


A) increase the exchange rate ($/pound) to $2.50.
B) decrease the exchange rate ($/pound) to $1.50.
C) decrease the equilibrium quantity from 400 to 300 pounds.
D) increase the demand for pounds from D2 to D1.

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