If American consumers increase their demand for British goods, then they are willing to pay fewer U.S.dollars per British pound.

Question

Quizplus · Accepted Answer

If American consumers increase their demand for British goods, they would need more British pounds to purchase those goods, increasing the demand for pounds. This would typically lead to a willingness to pay more U.S. dollars per British pound, not fewer, as they seek to exchange more dollars for pounds to facilitate their purchases.

If American Consumers Increase Their Demand for British Goods, Then