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The Graph Below Shows the Supply and Demand Curves for Dollars

question 32

Multiple Choice

The graph below shows the supply and demand curves for dollars in the pound/dollar market. The graph below shows the supply and demand curves for dollars in the pound/dollar market.   Refer to the graph above. Assume that D<sub>1</sub> and S<sub>1</sub> are the initial demand for and supply of dollars. The exchange rate will be: A)  $5 equals 1 pound B)  $4 equals 1 pound C)  $1 equals 5 pounds D)  $0.20 equals 1 pound Refer to the graph above. Assume that D1 and S1 are the initial demand for and supply of dollars. The exchange rate will be:


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