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Suppose that, initially, the foreign exchange market between the United States and Great Britain is in equilibrium. Suppose that incomes increase in the United States,
Suppose that, initially, the foreign exchange market between the United States and Great Britain is in equilibrium. Suppose that incomes increase in the United States, causing U.S. consumers to purchase more goods and services made in Great Britain. Illustrate how this change affects the market for pounds by shifting one or both of the curves on the following graph Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farthen Supply Demand Supply 0 0r 0 mand POUNDS
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