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The Figure Given Below Illustrates the Market for British Pounds

Question 22

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. If the U.S. Federal Reserve uses a contractionary monetary policy, the _____ curve would shift right and the pound would tend to _____. A) S<sub>£</sub>; appreciate B) D<sub>£</sub>; depreciate C) S<sub>£</sub>; depreciate D) S<sub>£</sub>; appreciate. If the U.S. Federal Reserve uses a contractionary monetary policy, the _____ curve would shift right and the pound would tend to _____.


A) S£; appreciate
B) D£; depreciate
C) S£; depreciate
D) S£; appreciate.

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