In the diagram ${D_1}$ and ${S_1}$ are the initial demand and supply curves of the UK pound (£) on the foreign exchange markets.
What will cause the demand curve to shift to ${D_2}$ and the supply curve to ${S_2}$?
1 )
an appreciation of the pound
2 )
an increase in the price level in the US
3 )
an increase in incomes in the US
a decrease in UK interest rates
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