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Consider the Currency Market for British Pounds and U

Question 214

Multiple Choice

Consider the currency market for British pounds and U.S. dollars. An increase in the supply of British pounds


A) results in an appreciation of the pound and a depreciation of the dollar.
B) results in a depreciation of the pound and a depreciation of the dollar.
C) is equivalent to an increase in the demand for the U.S. dollar.
D) Is equivalent to a decrease in the demand for the U.S. dollar.

Correct Answer:

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