Figure 15.2 Market for the British Pound

Multiple Choice

Figure 15.2 Market for the British Pound
-Refer to Figure 15.2.Suppose the United States decreases financial investment in England.Other things equal, under a floating exchange rate system the new equilibrium exchange rate would be

A) $0.40 per franc.
B) $0.60 per franc.
C) $0.80 per franc.
D) $1 per franc.