If the U.S.interest rate falls while the British interest rate remains constant,which of the following will happen in the market for pounds?
A) A rightward shift of the demand curve,a leftward shift of the supply curve,and an appreciation of the pound
B) A leftward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the pound
C) A leftward shift of the demand curve,a leftward shift of the supply curve,and a depreciation of the pound
D) A rightward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the pound
E) A leftward shift of the demand curve,a rightward shift of the supply curve,and a depreciation of the pound.

Question

Quizplus · Accepted Answer

When U.S. interest rates fall, U.S. investments become less attractive, increasing demand for British pounds as investors seek higher returns in Britain, leading to a rightward shift in the demand curve and an appreciation of the pound.

If the USInterest Rate Falls While the British Interest Rate Remains Constant,which