Explore BrainMass

The affects of demand shifts

The demand curve for French plutonium shifts outward, at about the same time as the appearance of the foreign-exchange dollars. What happens to the demand for French Francs?

a. Transaction demand goes up

b. Precautionary demand goes up

c. Speculative demand goes up

d. Nothing

© BrainMass Inc. brainmass.com June 25, 2018, 3:58 am ad1c9bdddf

Solution Preview

C) is the correct answer.
Speculative demand (for money): The need for cash to take advantage of ...

Solution Summary

The question pertains to demand and supply and the response correctly answers the question and also provides a brief explanation. Overall, a concise and to the point reply to the question being asked.