Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Refer to Figure 34.4. The demand and supply of pounds are
S
1 and
D
1. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds?
◦ an increase in income in Great Britain
◦ a sudden dislike of U.S. products in Great Britain
◦ an increase in the price level in Great Britain
◦ a sudden dislike of British products in the United States