Refer to the graph which represents a flexible exchange market for foreign currency. 1. Other things equal, a leftward shift of the demand curve would: · A. appreciate the euro. • B. reduce the equilibrium quantity of euros. · C. cause a surplus of euros. 2. A leftward shift of the supply curve would: (select from choices above) • Answer: 3. A rightward shift of the supply curve would: · A. appreciate the euro. · B. cause a surplus of euros. · C. decrease the equilibrium quantity of euros. · D. appreciate the dollar. Dollar Price of One Euro Quantity of Euros
