The Figure Given Below Depicts the Foreign Exchange Market for British

question 129

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S.dollars. Figure 22.2
- Refer to Figure 22.2.Suppose S₁ is the initial supply curve and the British demand for U.S.manufactured computers decreases.Then,with flexible exchange rates:

• A)the price per British pound decreases by $0.10 and the quantity of British pounds increases by 50.
• B)the price per British pound decreases by $0.10 and the quantity of British pounds decreases by 50.
• C)the price per British pound increases by $0.15 and the quantity of British pounds decreases by 50.
• D)the price per British pound increases by $0.15 and the quantity of British pounds decreases by 75.
• E)the price per British pound and the quantity of British pounds remain unchanged.

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Definitions:

CPU Converts

The process by which the central processing unit (CPU) of a computer converts instructions (data) into actions or results.

Operating System

Fundamental software that manages hardware resources and provides common services for computer programs.

Restoring

The process of bringing something back to its original state, often used in the context of data recovery.

Operate Normally

The condition of functioning in the expected or designated manner, often relating to machinery, computers, or systems running without errors.