A shifter of both the demand and supply curve in an exchange rate graph is Recessions. When there is a recession in the US, the following happens:

a) Demand for US $ decreases and Supply of US $ decreases resulting in an undetermined change in the US $

b) Demand for US $ increases and Supply of US $ decreases resulting in an appreciation of the US $

c) Demand for US $ increases and Supply of US $ increases resulting in an appreciation of the US $

d) Demand for US $ decreases and Supply of US $ increases resulting in a depreciation of the US $

A big earthquake in a major city in a state adversely affects the income of those living in the cities as compared to those living in rural areas. As a result of the earthquake, the share of income changes as follows. Assume the fourth and fifth quintile live in the cities. What is the change in the share of income after the drought (as compared to before) for those living in the cities? Quintile BEFORE AFTER EARTHQUAKE EARTHQUAKE Share of income (%) Share of income % _I_ 3) Income share decreased by 20 percent after the earthquake b) Income share decreased by 10 percent after the earthquake c) Income share decreased by 14 percent after the earthquake d) Income share decreased by 36 percent after the earthquake