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The Demand for Pounds in the Foreign Exchange Market Is

Question 22

Multiple Choice

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.

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