Question 1
Refer to the information provided in Figure 34.3 below to answer the question(s) that follow.


Refer to Figure 34.3. Which of the following will shift the supply of pounds from
S
1 to
S
0?
◦ an increase in U.S. income
◦ a decrease in the British price level
◦ British people wanting to buy more U.S. goods and assets
◦ a decrease in British income
Question 2
Refer to the information provided in Figure 34.3 below to answer the question(s) that follow.


Refer to Figure 34.3. If fewer British firms want to invest in the United States, the supply of pounds will
◦ shift from
S1 to
S2.
◦ shift from
S1 to
S0.
◦ shift from
S2 to
S0.
◦ not change.