Refer to the information provided in Figure 34.4 below to answer the question(s) that follow. Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are S2 and D2. Which of the following can change the equilibrium exchange rate ($/pound) to $1.50 and the equilibrium quantity to 400 pounds?

A. the price level in Great Britain decreases
B. United States purchases of British-made cars increase
C. income in Great Britain decreases
D. British purchases of U.S.-made cars increase


Answer: D

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