The demand curve for British pounds slopes downward because as the dollar ______ British goods become ______ for Americans.Therefore, Americans purchase ______ British goods, and the quantity of pounds demanded increases.
A) appreciates against the pound; less expensive; more
B) appreciates against the pound; more expensive; fewer
C) depreciates against the pound; less expensive; more
D) depreciates against the pound; more expensive; more

Question

Quizplus · Accepted Answer

When the dollar appreciates against the pound, British goods become less expensive for Americans, leading them to purchase more British goods, thus increasing the demand for pounds.

The Demand Curve for British Pounds Slopes Downward Because as the Dollar