The depreciation of the pound on Black Wednesday led to a decrease in the pound exchange rate,a(n)________ in net exports and a(n)________ in aggregate economic activity.

Question

Quizplus · Accepted Answer

The depreciation of the pound made UK exports cheaper and imports more expensive, leading to an increase in net exports and, consequently, an increase in aggregate economic activity.

The Depreciation of the Pound on Black Wednesday Led to a Decrease