Factors that will shift the demand curve for pounds include all of the following EXCEPT
A) the expected future exchange rate of the pound.
B) inflation rates around the world.
C) interest rates around the world.
D) the current exchange rate of the pound.

Question

Quizplus · Accepted Answer

The current exchange rate of the pound is not a factor that will shift the demand curve for pounds because it is already represented on the graph as the intersection of the demand and supply curves. The other factors listed (expected future exchange rate, inflation rates, and interest rates) can all shift the demand curve.

Factors That Will Shift the Demand Curve for Pounds Include