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Assume that GBP|USD = 2.00 (rate chosen for math ease). After some unanticipated event, the British economy is now expected to fall into a recession
Assume that GBP|USD = 2.00 (rate chosen for math ease). After some unanticipated event, the British economy is now expected to fall into a recession while the United States economy is expected to enjoy robust growth. As a result which of following is most likely in a graph of the currency market with GBP per USD (original equilibrium is 0.50) on the vertical axis (quantity of USD on horizontal axis)? Drawing a diagram would be useful. Group of answer choices The supply curve would shift left and the new price would be greater than 0.50. The supply curve would shift right and the new price would be greater than 0.50. The supply curve would shift left and the new price would be less than 0.50. The supply curve would shift right and the new price would be less than 0.50
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