Figure 29-3 -Refer to Figure 29-3. Consider the Market for U.S. Dollars

Multiple Choice

Figure 29-3
-Refer to Figure 29-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be

A) an increase in U.S. real income.
B) speculators expect the dollar to depreciate in value in the near future.
C) an economic expansion in the United States.
D) a decrease in Japanese interest rates.