Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Within the diagram, curves D1 and S show the demand for and supply of £ sterling in the foreign exchange market. What could cause the demand curve to move from D1 to D2?

  • Aa decrease in UK interest rates
  • Ba decrease in the price of US goods sold in the UK
  • Cthe removal of UK tariffs against US goods
  • Dthe development of UK substitutes for US goods

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