Suppose the following graph shows what prevailed on the foreign exchange market in 2015 with floating exchange

Question:

Suppose the following graph shows what prevailed on the in 2015 with floating exchange rates.
a. Name three phenomena that might shift the demand curve to the right.
b. Which, if any, of these three phenomena might cause a simultaneous shift of the supply curve to the left?
c. What effects might each of the three phenomena have on the balance of trade if the floats?

$1.60 Quantity of pounds Pri ce of pounds, punod ad sejop

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...

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