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Author Question: The following diagram shows the demand for sterling by holders of dollars (e.g. to buy UK imports) ... (Read 108 times)

saraeharris

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on: May 25, 2020
The following diagram shows the demand for sterling by holders of dollars (e.g. to buy UK imports) and the supply of sterling to purchase dollars (e.g. to buy US exports). The sterling demand and supply curves are currently D0 and S0 and the exchange rate is currently £1 = $1.30.

Now assume that the rate of inflation is higher in the USA than in the UK. What would happen to the exchange rate assuming that one of the demand and supply curves, or both curves, shift to one of the other positions shown in the diagram.
◦ Fall to $1.10
◦ Fall to $1.20
◦ Rise to $1.40
◦ Rise to $1.50
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
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Marked as best answer by saraeharris on May 25, 2020

sokh

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Reply #1 on: May 25, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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saraeharris

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Reply 2 on: May 25, 2020
Thanks for the timely response, appreciate it

meganmoser117

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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