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Figure 12.3 Market for British Pounds

Question 21

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Figure 12.3 Market for British Pounds
​ Figure 12.3 Market for British Pounds ​ -Consider Figure 12.3.The market is initially governed by demand curve D<sub>0</sub> and supply curve S<sub>0</sub>.Suppose the domestic price level rises rapidly in the United States but stays relatively constant in the United Kingdom, which supply and demand curves depict the new situation? A) S<sub>1</sub> and D<sub>2</sub> B) S<sub>2</sub> and D<sub>1</sub> C) S<sub>0</sub> and D<sub>2</sub> D) S<sub>0</sub> and D<sub>1</sub>
-Consider Figure 12.3.The market is initially governed by demand curve D0 and supply curve S0.Suppose the domestic price level rises rapidly in the United States but stays relatively constant in the United Kingdom, which supply and demand curves depict the new situation?


A) S1 and D2
B) S2 and D1
C) S0 and D2
D) S0 and D1

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