An increase in South Africa's taste for UK produced Hondas would cause the pound to
A)depreciate and would increase UK net exports.
B)appreciate and would increase UK net exports.
C)depreciate and would decrease UK net exports.
D)appreciate and would decrease UK net exports.

Question

Quizplus · Accepted Answer

An increase in South Africa's taste for UK-produced Hondas would lead to higher demand for the pound to purchase these goods, causing the pound to appreciate. This would also increase UK net exports as more goods are being sold abroad.

An Increase in South Africa's Taste for UK Produced Hondas