Immediately following the June 2016 U.K. referendum vote to leave the European Union, the value of the

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Immediately following the June 2016 U.K. referendum vote to leave the European Union, the value of the British pound plummeted versus the U.S. dollar. Using a demand and supply framework for British pounds, identify two factors that might have contributed to this decline by shifting the demand curve for British pounds. Illustrate the shift graphically.

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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