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Social Science Clinic => Economics => Macroeconomics => Topic started by: natalie2426 on Mar 16, 2019

Title: Refer to Figure 18-2. Consider the market for U.S. Dollars against the British pound ...
Post by: natalie2426 on Mar 16, 2019

Question 1

Figure 18-2











Refer to Figure 18-2.  Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?

◦ Interest rates rise in England.
◦ Interest rates rise in the United States.
◦ Real income rises in the United States.
◦ Real income falls in England.

Question 2

Figure 18-2











Refer to Figure 18-2.  Consider the market for U.S. Dollars against the British pound shown in the graph above. From this graph we can conclude that the dollar price of a British pound has ________ to ________ dollars per pound

◦ decreased; 0.46
◦ increased; 2.17
◦ decreased; 2.00
◦ increased; 0.50

Title: Refer to Figure 18-2. Consider the market for U.S. Dollars against the British pound ...
Post by: JaynaD87 on Mar 16, 2019

Answer 1

Interest rates rise in England.

Answer 2

increased; 2.17