Multiple Choice
Refer to the information provided in Figure 19.4 below to answer the questions that follow. 
Figure 19.4
-Refer to Figure 19.4. The demand and supply of pounds are S2 and D2. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds?
A) an increase in income in the United States
B) a sudden dislike of British products in the United States
C) an increase in the price level in Great Britain
D) a decrease in the price level in the United States
Correct Answer:
Verified
Correct Answer:
Verified
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