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Figure 14-2 Market for the British Pound Dollars per Pound 1.0 O.S 0.6 04 0.2 5 10 15 20 25 $0.40 per pound. So O

Figure 14-2 Market for the British Pound Dollars per Pound 1.0 O.S 0.6 04 0.2 5 10 15 20 25 $0.40 per pound. So O $1 per pound. O $0.60 per pound. $0.80 per pound. Do Refer to Figure 14-2. Suppose the United States decreases financial investment in England. Other things being equal, under a floating exchange-rate system the new equilibrium exchange rate would be 30 35 40 45 Billions of Pound

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