the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will
A)Appreciate against the U.S.dollar.
B)Depreciate against the U.S.dollar.
C)Remain unchanged against the U.S.dollar.
D)Appreciate against other major currencies.
E)Appreciate against the dollar and other major currencies.

Question

Quizplus · Accepted Answer

If the inflation rate in the United States is greater than the inflation rate in Britain, this means that the value of the U.S. dollar is decreasing faster than the value of the British pound. Therefore, the British pound will appreciate against the U.S. dollar.

The Inflation Rate in the United States Is Greater Than