Refer to the Information Provided in Figure 20

question 46

Multiple Choice

Refer to the information provided in Figure 20.4 below to answer the questions that follow. Figure 20.4
-Refer to Figure 20.4.The demand and supply of pounds are D2 and S2.An increase in British demand for U.S.exports,ceteris paribus,could

• A)increase the exchange rate ($/pound)to $2.50.
• B)decrease the exchange rate ($/pound)to $1.50.
• C)decrease the equilibrium quantity from 400 to 300 pounds.
• D)increase the demand for pounds from D2 to D1.

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