Suppose that British tastes changed and American goods become more desirable to British citizens.There would be

Question

Quizplus · Accepted Answer

If British citizens increase their demand for American goods, they will need more US dollars to purchase those goods, leading to an increase in the demand for US dollars and a corresponding decrease in the demand for pounds. As a result, the supply of pounds will shift to the right, which will lead to a decrease in the value of the pound relative to the dollar.

Suppose That British Tastes Changed and American Goods Become More