If there is a recession in the United Kingdom and a reduction in British imports, and an economic boom in the United States and an increase in U.S. imports, then these events are most likely to cause the British pound to

Question

Quizplus · Accepted Answer

The British pound is likely to appreciate because there is a reduction in British imports, which means that there is less demand for the pound. The U.S. dollar is likely to depreciate because there is an increase in U.S. imports, which means that there is more demand for the dollar.

If There Is a Recession in the United Kingdom and a Reduction