Use the graph below to answer questions 9-11.
Figure 2.3: 
-Refer to Figure 2.3.Suppose that the spot exchange rate of British pound is $2.00 per pound.Suppose that the U.S.decreases its imports from the U.K.Under flexible exchange rate system,the Bank of England will:
A) let the British pound appreciates
B) let the British pound depreciates
C) sell pounds and buy dollars in foreign exchange market.
D) sell dollars and buy pounds in foreign exchange market.
Correct Answer:
Verified
Q1: Special Drawing Rights are issued by
A) The
Q2: Which of the following exchange rate systems
Q4: The gold standard was an example of:
A)
Q5: When the United States suspended the convertibility
Q6: Small nations whose trade and financial relationships
Q7: Which of the following statements is correct
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