If the demand for British pounds ____, the pound will ____, other things being equal.
A)increases; appreciate
B)decreases; appreciate
C)increases; depreciate
D)decreases; appreciate AND increases; depreciate

Question

Quizplus · Accepted Answer

When the demand for a currency, such as the British pound, increases, its value relative to other currencies will appreciate, assuming all other factors remain constant. This is because higher demand for the pound increases its price in the foreign exchange market.

If the Demand for British Pounds ____, the Pound Will