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The affects of demand shifts

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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

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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.

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

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