An increased preference for Japanese goods in the UK will shift the demand curve for pounds to the right.

Question

Quizplus · Accepted Answer

The demand curve for pounds represents the demand for purchasing goods and services from the UK. Therefore, an increased preference for Japanese goods in the UK will not affect the demand for pounds directly. However, it may lead to a decrease in demand for UK goods, which could indirectly impact the demand for pounds in the long run.

An Increased Preference for Japanese Goods in the UK Will