Figure 7.1 -Please Refer to Figure 7.1. Suppose the Economy Is at Is

question 108

Multiple Choice

Figure 7.1
-Please refer to Figure 7.1. Suppose the economy is at point D. A war that destroys factories will:

• A) move the economy to point B.
• B) move the economy to point C.
• C) move the economy to point A.
• D) keep the economy at point D.

---

Definitions:

British Pounds

The currency of the United Kingdom, also known as sterling.

Currency Exchange

The process of exchanging one form of currency for another, based on current exchange rates.

Euros

The official currency used in 19 of the 27 European Union countries, known as the Eurozone.

Weakens

Describes the decrease in strength or value of an entity, such as currency depreciating in value against others in the foreign exchange market.