Refer to the information provided in Figure 19.3 below to answer the questions that follow. Figure 19.3
-Refer to Figure 19.3. If British people want to buy more U.S. goods and assets, the supply of pounds will

Question

Refer to the information provided in Figure 19.3 below to answer the questions that follow.  Figure 19.3
-Refer to Figure 19.3. If British people want to buy more U.S. goods and assets, the supply of pounds will

Quizplus · Accepted Answer

According to the graph, an increase in demand for U.S. goods and assets would lead to an increase in demand for dollars and a decrease in demand for pounds. This would cause the pound to depreciate relative to the dollar, leading to a shift in the supply of pounds from S₁ to S₀. Therefore, the correct answer is B.

Refer to the Information Provided in Figure 19