When the British pound rises in value relative to other currencies,then
A)goods imported into Britain rise in price.
B)British exports rise in price.
C)neither British exports nor imports rise in price.
D)both British exports and imports rise in price.

Question

Quizplus · Accepted Answer

When the British pound rises in value relative to other currencies, it means that more of the foreign currency is needed to buy pounds. This makes British exports more expensive for foreign buyers, as they have to spend more of their own currency to purchase the same amount of British goods. Hence, British exports rise in price. Conversely, imports become cheaper for Britain, as they can now buy more foreign goods for the same amount of pounds.

When the British Pound Rises in Value Relative to Other