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Refer to the Graph Shown

Question 7

Multiple Choice

Refer to the graph shown. An increase in American interest rates would shift: Refer to the graph shown. An increase in American interest rates would shift:   A) D<sub>1</sub> right and S<sub>1</sub> left, causing an appreciation of the euro. B) D<sub>1</sub> right and S<sub>1</sub> right, causing a depreciation of the euro. C) D<sub>1</sub> left and S<sub>1</sub> left, causing an appreciation of the euro. D) D<sub>1</sub> left and S<sub>1</sub> right, causing a depreciation of the euro.


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

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