Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the following chart. Demand just shifted from Dto D. The exchange rate is currently $1.80 - 1.00, Which of the following is correct? Dollar price per pound (exchange rate) $1.90 $1.80 D' n D DES At an exchange rate of $1.80 = 1.00, demand for British pounds exceeds supply, Two of the three other answers are correct Ole, at an exchange rate of 51.30 1.00, demand for British pounds exceeds supply, and under a flexible exchange rate regime, the US dollar will depreciate to an exchange rate of $1.90 - 100. At an exchange rate of $1.80 - 1.00, supply for British pounds exceeds demand, Under a flexible exchange rate regime, the US dollar will depreciate to an exchange rate of $1.90 = 1.00