Refer to the Graph Above

question 113

Multiple Choice

Refer to the graph above.If the supply curve shifts from S1 to S2, the value of the dollar will:

• A)increase in response to excess demand equal to Q4 -Q2.
• B)increase in response to excess demand equal to Q3 -Q1.
• C)decrease in response to excess supply equal to Q4 -Q2.
• D)decrease in response to excess supply equal to Q3 -Q1.

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Definitions:

Regulations

Rules and guidelines issued by governmental agencies to control or direct the conduct of activities.

Foreign Currency

Currency other than the functional currency of the entity, used in international transactions or financial statements.

Reporting Currency

The reporting currency is the currency used to present the financial statements of a company, usually the domestic currency of the country where the company is located.

Gains or Losses

Financial increases or decreases in equity resulting from business activities or investments not directly related to the company’s main operations.