Which of the Following Would Cause the Demand Curve for Pounds

question 30

Multiple Choice

Which of the following would cause the demand curve for pounds to shift to the left?

• A) a decrease in Britain's rate of inflation relative to U.S. inflation
• B) an increase in U.S. interest rates relative to British interest rates
• C) a rise in British labor productivity relative to U.S. labor productivity
• D) improving American tastes for British goods

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Definitions:

Mixed Economy

A mixed economy that integrates both private sector and government involvement.

Government Failure

The occurrence when government actions lead to outcomes that are inefficient or not beneficial to society, contrary to its intended outcomes.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a welfare loss.

Government Failure

A situation where government intervention in the economy creates inefficiency and leads to a misallocation of resources.