If British real GDP fell,there would be
A) a rightward movement along the supply of British pounds curve in the dollar-pound market
B) a leftward movement along the supply of British pounds curve in the dollar-pound market
C) an increased supply of British pounds to the dollar-pound market
D) a decreased supply of British pounds to the dollar-pound market
E) the tendency for the supply of British pounds curve to become steeper in the dollar-pound market

Question

Quizplus · Accepted Answer

A fall in British real GDP would likely lead to a decreased supply of British pounds in the dollar-pound market as British consumers and businesses would have less income to spend on foreign goods and services, reducing the need to exchange pounds for dollars.

If British Real GDP Fell,there Would Be