Consider the Market in Which Canadian Dollars Are Exchanged for British

question 31

Multiple Choice

Consider the market in which Canadian dollars are exchanged for British pounds. A decreased preference of Canadian consumers for British goods would

• A)lead to a temporary excess demand for British pounds on the international currency market.
• B)shift the supply- of- pounds curve to the right and lead to a fall in the exchange rate.
• C)shift the demand- for- pounds curve to the left and lead to a fall in the exchange rate.
• D)shift the supply- of- pounds curve to the left and lead to a rise in the exchange rate.
• E)shift the demand- for- pounds curve to the right and lead to a rise in the exchange rate.

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