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The Figure Given Below Illustrates the Market for British Pounds

Question 38

Multiple Choice

The figure given below illustrates the market for British pounds. D£ and S£ are the demand and supply curves of the British pounds respectively. The figure given below illustrates the market for British pounds. D<sub>£</sub> and S<sub>£</sub> are the demand and supply curves of the British pounds respectively. A downward movement along the vertical axis would correspond to a(n) _____ of the U.S. dollar. A) arbitrage B) swap C) appreciation D) depreciation A downward movement along the vertical axis would correspond to a(n) _____ of the U.S. dollar.


A) arbitrage
B) swap
C) appreciation
D) depreciation

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