The Figure Given Below Depicts the Equilibrium in the Foreign

question 69

Multiple Choice

The figure given below depicts the equilibrium in the foreign exchange market. Figure 13.1 Refer to Figure 13.1.Which of the following is most likely to cause equilibrium to change from point A to point D?

• A)A decrease in U.S.demand for British goods and services
• B)An increase in U.S.demand for British goods and services
• C)An increase in the supply of dollars on the foreign exchange market
• D)A decrease in the supply of British pounds on the foreign exchange market
• E)An increase in British demand for U.S.exports

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