In the diagram, ${D_1}{D_1}$ and ${S_1}{S_1}$ are the initial demand and supply curves of the pound sterling (£) on the foreign exchange market.
What will cause the demand curve to shift to ${D_2}{D_2}$ and the supply curve to ${S_1}{S_1}$?
1 )
an appreciation of the pound
an increase in UK interest rates
3 )
a reduction in the level of UK import tariffs
4 )
a reduction in the quality of UK goods
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