Which of the following will lead to an appreciation of the U.S. dollar against the British pound?
A) an increase in British interest rates
B) an increase in U.S. demand for British imports
C) an increase in British demand for U.S. imports
D) a decrease in British demand for U.S. assets

Question

Quizplus · Accepted Answer

An increase in British demand for U.S. imports will lead to an appreciation of the U.S. dollar against the British pound because it increases the demand for U.S. dollars to pay for those imports.

Which of the Following Will Lead to an Appreciation of the U.S