Due to uncertainty around Brexit, the value of the British pound has been falling against the Euro. How will this affect the demand for German goods in the UK?
A)The demand for German goods would increase.
B)The demand for German goods would not change.
C)The demand for German goods would double.
D)The demand for German goods would fall.

Question

Quizplus · Accepted Answer

When the value of the British pound falls, UK consumers have less purchasing power. This means that the price of German goods will effectively increase for UK consumers. As a result, the demand for German goods in the UK is likely to fall.

Due to Uncertainty Around Brexit, the Value of the British