If There Is a Recession in the United Kingdom and a Reduction

question 298

Multiple Choice

If there is a recession in the United Kingdom and a reduction in British imports, and an economic boom in the United States and an increase in U.S. imports, then these events are most likely to cause the British pound to

• A)appreciate and the U.S. dollar to appreciate.
• B)depreciate and the U.S. dollar to depreciate.
• C)appreciate and the U.S. dollar to depreciate.
• D)depreciate and the U.S. dollar to appreciate.

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Definitions:

Portfolio

A collection of investments held by an individual or an institution.

Expected Rate

A predicted rate of return or outcome based on certain assumptions or historical data.

Standard Deviation

A statistical measure of the dispersion or spread of a set of values, indicating how much the values differ from the mean.

Zero Standard Deviation

A statistical measure indicating that all values within a data set are identical; there is no variability.