If the U.S. dollar appreciated against the British pound, other things being equal, we would expect
A) the British demand for U.S. products to increase.
B) a reduction in trade between the United States and Britain.
C) the U.S. demand for British products to decrease.
D) the U.S. demand for British products to increase.
E) an increase in trade between the United States and Britain.

Question

Quizplus · Accepted Answer

If the U.S. dollar appreciated against the British pound, it would become cheaper for Americans to buy British products. This would increase the import demand for British products in the U.S., causing an increase in the U.S. demand for British products.

If the US Dollar Appreciated Against the British Pound, Other Things Being