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?
A) The U.S. overall demand for foreign exchange, and British pounds, in particular, will increase.
B) The U.S. overall demand for foreign exchange, and British pounds, in particular, will decrease.
C) The U.S. demand for British pounds will increase, but the overall demand for foreign exchange will probably decrease.
D) The U.S. demand for British pounds will decrease, but the overall demand for foreign exchange will probably increase.
Correct Answer:
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