The demand for pounds in the foreign exchange market is downward- sloping because when the price of a pound (the exchange rate) falls
A) foreigners demand fewer UK goods because these goods have become more expensive.
B) Britons demand fewer foreign goods because these goods have become more expensive.
C) Britons demand more foreign goods because these goods have become less expensive.
D) foreigners demand more UK products because these products have become less expensive.
Correct Answer:
Verified
Q17: The supply curve for sterling on the
Q18: Which of the following would not shift
Q19: When the exchange rate falls this is
Q20: The following diagram shows the foreign exchange
Q21: The following diagram shows the foreign exchange
Q23: If the inflation rate falls in the
Q24: If the UK receives larger than expected
Q25: If there is a current account deficit
Q26: If the UK takes part in another
Q27: If currency dealers expect the value of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents