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

question 108

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 18-2

-In Figure 18-2,which of the following would cause the American demand for foreign exchange (pounds) to shift from D₁ to D₂?

• A)an increase in the U.S.real interest rate
• B)higher inflation in Britain than in the United States
• C)higher income growth in Britain than in the United States
• D)an increased level of vacation travel to Britain by Americans