The Demand Curve for British Pounds Slopes Downward Because as the Dollar

question 72

Multiple Choice

The demand curve for British pounds slopes downward because as the dollar ______ British goods become ______ for Americans.Therefore, Americans purchase ______ British goods, and the quantity of pounds demanded decreases.

• A) appreciates against the pound; more expensive; more
• B) appreciates against the pound; more expensive; fewer
• C) depreciates against the pound; more expensive; more
• D) depreciates against the pound; more expensive; fewer

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Definitions:

Cash

Physical money, such as coins and bills, or balances in checking or savings accounts, available for use immediately.

Differential Analysis

A decision-making process that focuses on the costs and benefits that change between decision alternatives.

Differential Costs

The difference in cost between two alternative decisions, or changes in cost that result from choosing one option over another.

Equipment Replacement

The process of buying new equipment to replace old or outdated machinery to maintain or improve operational efficiency.