Refer to the Information Provided in Figure 20

Multiple Choice

Refer to the information provided in Figure 20.4 below to answer the questions that follow.
Figure 20.4
-Refer to Figure 20.4.The demand and supply of pounds are D₁ and S₁.If the supply shifts to S₂ and demand remains unchanged at D₁

A) the dollar depreciates and the equilibrium quantity of pounds increases.
B) the dollar depreciates and the equilibrium quantity of pounds decreases.
C) the dollar appreciates and the equilibrium quantity of pounds decreases.
D) the dollar appreciates and the equilibrium quantity of pounds increases.