. 10. Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the following chart. The exchange rate is currently $1.80-1.00. Which of the following is correct?'Explain your answer.. s s' Dollar price per pound (exchange rate) $1.90 $1.80 D' D QE S D=s A)---To-"fix" the exchange rate-at-$1.80=-1.00, the Federal-Reserve could use contractionary monetary policy to shift the demand-curve-to-the-left. - 1 B)---To-"fix" the exchange rate-at-$1.80= 1.00, the U.S. government could use contractionary fiscal policy to shift the demand-curve-to-the-left.I .C)---The British Government could use-fiscal-or monetary policy to shift-the-supply-curve-to-the- right to fix the exchange rate-to-$1.80=-1.00.1 ,D all of the options . 10. Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the following chart. The exchange rate is currently $1.80-1.00. Which of the following is correct?'Explain your answer.. s s' Dollar price per pound (exchange rate) $1.90 $1.80 D' D QE S D=s A)---To-"fix" the exchange rate-at-$1.80=-1.00, the Federal-Reserve could use contractionary monetary policy to shift the demand-curve-to-the-left. - 1 B)---To-"fix" the exchange rate-at-$1.80= 1.00, the U.S. government could use contractionary fiscal policy to shift the demand-curve-to-the-left.I .C)---The British Government could use-fiscal-or monetary policy to shift-the-supply-curve-to-the- right to fix the exchange rate-to-$1.80=-1.00.1 ,D all of the options