Any event that increases the supply of British pounds to be exchanged for U.S.dollars should result in a(an)_______ in the value of the British pound with respect to _______,other things being equal.
A) increase;U.S. dollar
B) increase;nondollar currencies
C) decrease;nondollar currencies
D) decrease;U.S. dollar

Question

Quizplus · Accepted Answer

An increase in the supply of British pounds would lead to a decrease in the value of the British pound with respect to U.S. dollars. This is because the increase in supply of British pounds would make it easier to obtain British pounds, which would decrease demand for British pounds and increase supply of British pounds, leading to a decrease in the value of the currency.

Any Event That Increases the Supply of British Pounds to Be