Which of the Following Would Lead to an Increase in the Demand

question 115

Multiple Choice

Which of the following would lead to an increase in the demand for British pounds?

• A) A declining interest in British goods
• B) A decrease in the U.S.interest rate relative to the British interest rate
• C) Expectations that the exchange rate will fall
• D) A decrease of the U.S.price level relative to the British price level
• E) A decrease in the exchange rate.

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Definitions:

Base Value

The initial point of reference for measuring changes or calculations, such as a starting level in financial indices or a fixed value in property assessments.

Percent Decrease

A measure of the reduction in amount or size of something expressed as a percentage.

Base Value

A reference point or initial value used in financial calculations, indexes, or for measuring changes in economic indicators.

Missing Value

In data analysis, a data point that is absent or not recorded, which can affect the outcome of statistical models.