Use the Figure Below to Answer the Following Question(s)

question 105

Multiple Choice

Use the figure below to answer the following question(s) . Figure 18-2
Figure 18-2 illustrates supply and demand for U.S. dollars and British pounds in the foreign exchange market. Which of the following would cause the demand for foreign exchange (pounds) to shift from D₁ to D₂?

• A) an increase in the real interest rate in Britain relative to the United States
• B) higher inflation in Britain than in the United States
• C) higher income growth in Britain than in the United States
• D) an increase in the number of British citizens vacationing in the United States

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Definitions:

Self-Efficacy

A person's confidence in their ability to carry out actions required to achieve particular outcomes.

Self-Efficacy Theory

The belief in one's own ability to succeed in specific situations or accomplish a task, playing a crucial role in determining how goals are set and achieved.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.

Competence

The ability of an individual or organization to perform a task effectively, with the required skills and knowledge.