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    Exam 9: The Exchange Rate and the Balance of Payments
  5. Question
    -In the Figure Above, the Shift in the Demand Curve
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-In the Figure Above, the Shift in the Demand Curve

Question 355

Question 355

Multiple Choice

  -In the figure above, the shift in the demand curve for U.S. dollars from D<sub>0</sub> to D<sub>1</sub> could occur when A)  the expected future exchange rate decreases. B)  the U.S. interest rate rises. C)  people expect that the dollar will depreciate. D)  foreign interest rates increase.
-In the figure above, the shift in the demand curve for U.S. dollars from D0 to D1 could occur when


A) the expected future exchange rate decreases.
B) the U.S. interest rate rises.
C) people expect that the dollar will depreciate.
D) foreign interest rates increase.

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