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

question 155

Multiple Choice

-In the figure above, the shift in the demand curve for U.S. dollars from D₀ to D₁ could occur when

• A) the expected future exchange rate falls.
• B) the U.S. interest rate decreases.
• C) foreign interest rates increase.
• D) people expect that the dollar will appreciate.

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