If the U.S. Demand for British Pounds Increases

question 17

Multiple Choice

If the U.S. demand for British pounds increases,

• A) the dollar price of a British pound will increase
• B) the dollar price of a British pound will decrease
• C) the exchange rate between dollars and pounds will be out of equilibrium
• D) the pound will fall in value against the dollar
• E) there will be no change in either the value of the dollar or the pound

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Definitions:

Fasci/o

A prefix in medical terminology referring to fascia, the connective tissue surrounding muscles, organs, and other structures.

Clavicle

A lengthy bone acting as a support between the scapula and the sternum, also referred to as the collarbone.

Dactyl/o

A prefix relating to the digits of the hands or feet (fingers or toes).

Hydro-

A prefix indicating a relation to water.