Figure 15-2 -Refer to Figure 15-2. Suppose the Exchange Rate Between the Rate

question 162

Multiple Choice

Figure 15-2
-Refer to Figure 15-2. Suppose the exchange rate between the dollar and the British pound
Is fixed at £0.3 per dollar. Now suppose U.S. residents choose to purchase more British goods and services. What happens in the foreign exchange market?

• A) The demand curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.
• B) The supply curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• C) The demand curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• D) The supply curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.

---

Definitions:

Anxiety-Arousing Memories

Psychological phenomena where past memories cause significant distress due to their disturbing nature.

Conscious Awareness

is the state of being aware of one's own existence, sensations, thoughts, surroundings, and actions.

Retroactive Interference

A memory phenomenon where newer information interferes with the ability to remember older information.

Source Amnesia

Attributing to the wrong source an event we have experienced, heard about, read about, or imagined. Source amnesia, along with the misinformation effect, is at the heart of many false memories.