Table 29-2

-All else equal,a depreciation of the British pound relative to currencies such as the euro and the U.S.Dollar should ________ British exports and ________ imports to Great Britain.

Question

Table 29-2
 
-All else equal,a depreciation of the British pound relative to currencies such as the euro and the U.S.Dollar should ________ British exports and ________ imports to Great Britain.

Quizplus · Accepted Answer

A depreciation of the British pound relative to other currencies makes British exports cheaper to foreign buyers, which should increase exports. On the other hand, imports to Great Britain become relatively more expensive, which should decrease imports.

Table 29-2 -All Else Equal,a Depreciation of the British Pound Relative to British