Suppose U.S.consumers start buying more English shoes and fewer U.S.shoes.What impact will this trend have on the foreign exchange market?

Question

Quizplus · Accepted Answer

If U.S. consumers buy more English shoes, they will need to exchange their U.S. dollars for British pound sterling in order to make purchases. Therefore, U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase. This will likely cause the value of the U.S. dollar to decrease relative to the British pound.

Suppose US