Exhibit 18.1 -Refer to Exhibit 18.1. a Shift of the Demand Curve

question 157

Multiple Choice

Exhibit 18.1

-Refer to Exhibit 18.1. A shift of the demand curve from D to D' will _____

• A) increase the exchange rate from E' to E.
• B) decrease the exchange rate from E to E'.
• C) cause the foreign currency to depreciate.
• D) cause the domestic currency to depreciate.
• E) cause the supply curve to shift.

---

Definitions:

Multiply

To increase in number by a specific factor; in arithmetic, it is the operation of adding a number to itself a certain number of times.

Decimal

A figure that features a decimal point to signify a part of a whole.

Round

To approximate a number to a specified degree of significance, often to the nearest whole number.