The Graph Shows the Supply and Demand Curves for Dollars

question 51

Multiple Choice

The graph shows the supply and demand curves for dollars in the pound/dollar market. Assume that D1 and S1 are the initial demand for and supply of dollars. Now suppose that Great Britain increases
Its imports of American products. Assuming freely floating exchange rates,

• A) the pound price of dollars will fall to 1/5 pound equals $1.
• B) the pound price of dollars will rise to 1/4 pound equals $1.
• C) the dollar price of pounds will increase to $5 equals 1 pound.
• D) a dollar shortage of MN will result in Britain.

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Definitions:

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to a high concentration of cones.

Phonemic Distinctions

The ability to recognize and differentiate between distinct phonemes, which are the smallest units of sound that can change the meaning of a word.

Native Language

The first language a person learns to speak, which is usually the language spoken in the family or community in which they were raised.

3 To 4 Months

A period indicative of a specific age range, often used in developmental studies to denote a significant phase in infant growth or behavior.