If Americans expect the dollar price of the British pound to rise,this expectation will cause
A) a rightward movement along the U.S.demand curve for pounds
B) a leftward shift of the U.S.demand curve for pounds
C) a rightward shift the U.S.demand curve for pounds
D) a leftward movement along the U.S.demand curve for pounds
E) no change in the U.S.demand curve for pounds

Question

Quizplus · Accepted Answer

If Americans expect the dollar price of the British pound to rise, it means they are anticipating that the pound will become more valuable in terms of dollars. This, in turn, will increase the demand for pounds from Americans, causing the demand curve for pounds to shift rightward.

If Americans Expect the Dollar Price of the British Pound