If the USInterest Rate Falls While the British Interest Rate Remains Constant,which

question 137

Multiple Choice

If the U.S.interest rate falls while the British interest rate remains constant,which of the following will happen in the market for pounds?

• A) A rightward shift of the demand curve,a leftward shift of the supply curve,and an appreciation of the pound
• B) A leftward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the pound
• C) A leftward shift of the demand curve,a leftward shift of the supply curve,and a depreciation of the pound
• D) A rightward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the pound
• E) A leftward shift of the demand curve,a rightward shift of the supply curve,and a depreciation of the pound.

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Definitions:

Balance of Payments

A record of all financial transactions made between a country and the rest of the world over a specific period.

Debit

A financial record that leads to a rise in assets or a reduction in liabilities on a corporation's balance sheet.

Balance of Payments

The balance of payments is a comprehensive record of a country's economic transactions with the rest of the world, including trade, investments, and financial transfers, over a specific time period.

Statistical Discrepancy

The difference between two statistical outcomes that should theoretically match but do not due to errors or estimation methods.