Suppose market participants expect the krona to depreciate relative to the dollar.

In the following graph, shift the supply curve, the demand curve, or both to illustrate the effects of the expectations described.

DSPRICE (dollars per krona)QUANTITY (krona)DS

True or False: The expectation that the krona would depreciate actually caused the krona to appreciate.

True

False

Suppose market participants expect the krona to depreciate relative to the dollar. In the following graph, shift the supply curve, the demand curve, or both to illustrate the effects of the expectations des O S D S PRICE (dollars per krona) D QUANTITY (krona) True or False: The expectation that the krona would depreciate actually caused the krona to appreciate. o True O False