The Figure Given Below Depicts the Foreign Exchange Market for British

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Suppose a permanent increase in demand for the Argentinean peso causes a chronic shortage of this currency in the foreign exchange market. The Argentinean government should then:

A) request other countries to revalue their currency.
B) devalue the peso.
C) allow the peso to appreciate.
D) restricts exports.
E) restrict imports.