question 8\nafter watching new downton abbey movie in the theaters, more us consumers plan to visit england…

question 8\nafter watching new downton abbey movie in the theaters, more us consumers plan to visit england in the fall. how would these events impact the above graph?\ndemand for pounds shifts out and the dollar depreciates.\nsupply of pounds shifts in and the dollar appreciates.\ndemand for pounds shifts in and the dollar appreciates.\ndemand for pounds shifts in and the dollar depreciates.

question 8\nafter watching new downton abbey movie in the theaters, more us consumers plan to visit england in the fall. how would these events impact the above graph?\ndemand for pounds shifts out and the dollar depreciates.\nsupply of pounds shifts in and the dollar appreciates.\ndemand for pounds shifts in and the dollar appreciates.\ndemand for pounds shifts in and the dollar depreciates.

Answer

Brief Explanations:

When more US consumers plan to visit England, they will need to exchange dollars for pounds. This increases the demand for pounds in the foreign - exchange market. An increase in the demand for pounds is represented by a right - shift (outward shift) of the demand curve for pounds. When the demand for pounds increases, the exchange rate of the dollar per pound ($R_{$ / £}$) rises, which means the dollar depreciates.

Answer:

Demand for pounds shifts out and the dollar depreciates.