Refer to the Diagram Below

question 42

Multiple Choice

Refer to the diagram below.Assume the initial demand for and supply of dollars are shown by D₁ and S₁.The exchange rate will be:

• A)$1 equals 5 British pounds.
• B)$4 equals 1 British pound.
• C)$5 equals 1 British pound.
• D)JQ₃ British pounds per dollar.