-In the Figure Above, the Shift in the Demand Curve

question 85

Multiple Choice

-In the figure above, the shift in the demand curve for U.S. dollars from D₀ to D₂ could occur when

• A) the expected future exchange rate increases.
• B) the U.S. interest rate rises.
• C) people expect that the dollar will depreciate.
• D) foreign interest rates fall.

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