Which of the following will lead to a depreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports
B) an increase in U.S. interest rates
C) a decrease in British demand for U.S. assets
D) a decrease in U.S. demand for British goods

Question

Quizplus · Accepted Answer

A decrease in British demand for U.S. assets would mean that there is less demand for U.S. dollars from British investors, which would lead to a decrease in the value of the U.S. dollar relative to the British pound. The other options would not necessarily lead to a depreciation of the U.S. dollar against the British pound.

Which of the Following Will Lead to a Depreciation of the U.S