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Consider This Diagram of the Market for Foreign Currency Exchange

Question 22

Multiple Choice

Consider this diagram of the market for foreign currency exchange. If the US government decides to increase import tariffs on imported steel, we could expect the Consider this diagram of the market for foreign currency exchange. If the US government decides to increase import tariffs on imported steel, we could expect the A) Demand for dollars to shift from D<sub>1</sub> to D<sub>2</sub>. B) Demand for dollars to shift from D<sub>2</sub> to D<sub>1</sub>. C) Supply of dollars to increase. D) Supply of dollars to decrease.


A) Demand for dollars to shift from D1 to D2.
B) Demand for dollars to shift from D2 to D1.
C) Supply of dollars to increase.
D) Supply of dollars to decrease.

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