Which of the following will lead to a depreciation of the U.S. dollar against the British pound?

Question

Quizplus · Accepted Answer

If there is a decrease in British demand for U.S. assets, there will be a decrease in demand for U.S. dollars, which will cause the value of the U.S. dollar to depreciate against the British pound. Choices A and D do not necessarily lead to a depreciation of the U.S. dollar against the British pound, as they do not directly affect the exchange rate between the two currencies. Choice B may attract more foreign investment in U.S. assets and strengthen the U.S. dollar, leading to an appreciation rather than a depreciation.

Which of the Following Will Lead to a Depreciation of the U.S