The Figure Given Below Depicts the Foreign Exchange Market for British

question 94

Multiple Choice

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

-An appreciation of the Norwegian kroner in relation to the U.S. dollar is most likely to cause:

• A)an increase in the U.S. demand for Norwegian goods.
• B)an increase in the Norwegian demand for U.S. goods.
• C)an increase in the supply of U.S. goods to Norway.
• D)a decrease in the supply of Norwegian goods to the United States.
• E)no change in the demand or supply of goods for either country.

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