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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 221

Question 221

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)  foreign interest rates increase. B)  the U.S. interest rate falls. C)  people expect that the dollar will depreciate. D)  the expected future exchange rate increases.
-In the figure above, the shift in the demand curve for U.S. dollars from D0 to D1 could occur when


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

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