Economics 9708 · AS & A Level · 6.4

6.4 — practice question

In the diagram, D1 and S1 show the original demand and supply curves for the UK pound (£) in the foreign exchange markets. What would make the demand curve move to D2 and the supply curve move to S2?

  • Aan appreciation of the pound
  • Ban increase in incomes in the US
  • Can increase in the price level in the US
  • Da decrease in UK interest rates

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