-In the Figure Above, the Shift in the Supply Curve

question 255

Multiple Choice

-In the figure above, the shift in the supply curve for U.S. dollars from S₀ to S₂ could occur when

• A) the U.S. interest rate differential increases.
• B) the U.S. interest rate falls.
• C) the current exchange rate falls.
• D) the expected future exchange rate rises.

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