Economics 9708 · AS & A Level · 6.4

6.4 — practice question

The diagram illustrates the market for £ sterling, which is currently in equilibrium. What action must the UK government take in order to reach an exchange rate of £1 = US$2.50?

  • Abuy £10 billion
  • Bbuy £20 billion
  • Csell £10 billion
  • Dsell £20 billion

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