Figure 18-1 -Refer to Figure 18-1.Currency Speculators Believe That the Value of the Value

question 248

Multiple Choice

Figure 18-1
-Refer to Figure 18-1.Currency speculators believe that the value of the euro will decrease relative to the dollar.Assuming all else remains constant,how would this be represented?

• A)Supply would decrease,demand would decrease and the economy moves from B to C to D.
• B)Supply would increase,demand would decrease and the economy moves from C to B to A.
• C)Supply would decrease,demand would increase and the economy moves from A to D to C.
• D)Supply would increase,demand would increase and the economy moves from D to A to B.

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