In a flexible exchange rate system, which of the following would NOT cause the U.S. dollar to depreciate relative to the British pound?

Question

Quizplus · Accepted Answer

A decrease in demand for British goods in the United States would not cause the U.S. dollar to depreciate relative to the British pound. Instead, it would likely lead to an appreciation of the U.S. dollar, as there would be less demand for pounds to buy British goods, reducing the value of the pound relative to the dollar.

In a Flexible Exchange Rate System, Which of the Following