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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 160 times)

erika

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Question 1

An excess supply of pounds will cause an appreciation of the pound.
◦ true
◦ false

Question 2

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 UK interest rates rise relative to US ones. Assuming that this shifts one or both curves to new positions as shown in the diagram, the exchange rate will rise to $1.40.
◦ true
◦ false


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Marked as best answer by erika on May 25, 2020

ryansturges

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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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erika

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Reply 2 on: May 25, 2020
YES! Correct, THANKS for helping me on my review


helenmarkerine

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Reply 3 on: Yesterday
Excellent

 

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