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Refer to the Information Provided in Figure 19

Question 259

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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>1</sub> and D<sub>1</sub>. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds? A) an increase in income in Great Britain B) a sudden dislike of U.S. products in Great Britain C) an increase in the price level in Great Britain D) a sudden dislike of British products in the United States Figure 19.4
-Refer to Figure 19.4. The demand and supply of pounds are S1 and D1. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds?


A) an increase in income in Great Britain
B) a sudden dislike of U.S. products in Great Britain
C) an increase in the price level in Great Britain
D) a sudden dislike of British products in the United States

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