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 S1 and D1. 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 the United States decreases
Correct Answer:
Verified
Correct Answer:
Verified
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