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Refer to the Information Provided in Figure 19

Question 75

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Refer to the information provided in Figure 19.4 below to answer the questions that follow. 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 S<sub>2</sub> and D<sub>2</sub>. Which of the following can change the equilibrium exchange rate ($/pound) to $1.50 and the equilibrium quantity to 400 pounds? A) British purchases of U.S.-made cars increase B) United States purchases of British-made cars increase C) the price level in Great Britain decreases D) income in Great Britain decreases Figure 19.4
-Refer to Figure 19.4. The demand and supply of pounds are S2 and D2. Which of the following can change the equilibrium exchange rate ($/pound) to $1.50 and the equilibrium quantity to 400 pounds?


A) British purchases of U.S.-made cars increase
B) United States purchases of British-made cars increase
C) the price level in Great Britain decreases
D) income in Great Britain decreases

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