Which of the Following Statements Regarding the Market for Foreign

question 29

Multiple Choice

Which of the following statements regarding the market for foreign currency exchange is true? An increase in UK net exports:

• A) Decreases the supply of pounds and the pound depreciates.
• B) Increases the demand for pounds and the pound appreciates.
• C) Increases the supply of pounds and the pound depreciates.
• D) Decreases the demand for pounds and the pound appreciates.

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