Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are D1 and S1. If the demand shifts to D2 and supply remains unchanged at S1
A. the dollar appreciates and the equilibrium quantity of pounds increases.
B. the dollar depreciates and the equilibrium quantity of pounds decreases.
C. the dollar depreciates and the equilibrium quantity of pounds increases.
D. the dollar appreciates and the equilibrium quantity of pounds decreases.
Answer: D
You might also like to view...
The rightward shift of the RS curve will lead to a ________ in the U.S. exchange rate, ________ in real GDP, and a ________ in the price level
A) rise; a decrease; fall B) rise; an increase; rise C) fall; an increase; rise D) rise; an increase; fall E) fall; an increase; fall The figure above shows the market for loanable funds. The supply of loanable funds curve shifts rightward.
Suppose that financial market participants now expect a future tax cut and that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper. B) The yield curve will become flatter. C) The yield curve will become horizontal. D) The yield curve will become downward sloping.