Refer to the graph shown. An increase in American interest rates would shift:

A. D1 left and S1 left, causing an appreciation of the euro.
B. D1 left and S1 right, causing a depreciation of the euro.
C. D1 right and S1 left, causing an appreciation of the euro.
D. D1 right and S1 right, causing a depreciation of the euro.

Answer: B

Economics

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