The figure given below illustrates the market for British pounds. D£ and S£ are the demand and supply curves of the British pounds respectively. 
Suppose initially the exchange rate is pegged at $2.50 per pound. If the governments allow the pound to float, the pound will experience a(n) :
Definitions:
Null Hypothesis
In statistical hypothesis testing, the hypothesis that there is no effect or no difference, and it serves as the default assumption to test against.
Critical Value
A point on the test distribution that is compared to the test statistic to decide whether to reject the null hypothesis.
Degrees of Freedom
The number of independent values or quantities that can be assigned to a statistical distribution.
Contingency Table
A contingency table is a type of table in a matrix format that displays the frequency distribution of the variables. It helps in analyzing the relationship between two or more categorical variables.
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