The Figure Given Below Depicts the Foreign Exchange Market for British

question 18

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Suppose a permanent increase in demand for the Argentinean peso causes a chronic shortage of this currency in the foreign exchange market. The Argentinean government should then:

• A)request other countries to revalue their currency.
• B)devalue the peso.
• C)allow the peso to appreciate.
• D)restricts exports.
• E)restrict imports.