Economics · May / June 2024 · Paper 11 · Question 29
In the diagram, curves D1 and S1 relate to the demand and supply of the US dollar ($) against the Chinese yuan. What is most likely to cause the demand curve for US dollars to shift from D1 to D2?
- Aa fall in Chinese interest rates
- Ba fall in US interest rates
- Ca faster growth rate in the US economy
- Da reduction in the US government budget deficit
As printed in the paper
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Correct answer: B. a fall in US interest rates
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