If real interest rates rise in the United Kingdom relative to the United States, then this event is most likely to cause the British pound to:

Question

Quizplus · Accepted Answer

When real interest rates rise in the UK relative to the US, it attracts more foreign capital to the UK, increasing demand for the British pound and causing it to appreciate. Conversely, the increased demand for the pound leads to a relative decrease in demand for the US dollar, causing it to depreciate.

If Real Interest Rates Rise in the United Kingdom Relative