An increase in British interest rates relative to those of France will make the demand for pounds in France _____ and exports from France to the U.K. become _____.

Question

Quizplus · Accepted Answer

An increase in British interest rates relative to those of France will make the pound more attractive to investors, increasing its demand in France. As the pound strengthens, French exports to the U.K. become more expensive due to the relative increase in the value of the pound against the euro.

An Increase in British Interest Rates Relative to Those of France