If, in a Demand Curve/supply Curve Graph with the Quantity

question 12

Multiple Choice

If, in a demand curve/supply curve graph with the quantity of U.S. imports plotted on the horizontal axis and the price of U.S. imports in dollars plotted on the vertical axis, suppose that, from an initial equilibrium position, there is now a depreciation of the U.S. dollar relative to other currencies. (Assume that the supply curve is horizontal.) Other things equal, this depreciation of the dollar would cause the __________.

• A) demand curve to shift to the left (or vertically downward)
• B) demand curve to shift to the right (or vertically upward)
• C) supply curve to shift vertically downward
• D) supply curve to shift vertically upward

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