Economics (AS & A Level) · Feb / March 2023 · Paper 12 · Question 23

Which change affecting the foreign exchange market for the US$ would be most likely to result in a shift to the right of the demand curve and a movement along the supply curve?

1. AThe US government reduces subsidies on exports to the EU.
2. BForeign currency speculators in Switzerland believe that the US$ is undervalued and act accordingly.
3. CThe US government intervenes in the foreign exchange market so as to bring about a drop in the value of the US$.
4. DUS pharmaceutical companies experience a fall in demand for their products from the rest of the world.

As printed in the paper