Assume That British Corporations Begin to Purchase More Supplies from the U.S

question 25

Multiple Choice

Assume that British corporations begin to purchase more supplies from the U.S. as a result of several labor strikes by British suppliers. This action reflects:

• A) an increased demand for British pounds.
• B) a decrease in the demand for British pounds.
• C) an increase in the supply of British pounds for sale.
• D) a decrease in the supply of British pounds for sale.

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Definitions:

Economic Expansion

A phase of the business cycle where there is an increase in economic activity, marked by rising GDP, employment, and income levels.

Loanable Funds

The total amount of funds available for borrowing in the financial market, influenced by savings and investments.

Investment Spending

Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.

Interest Rate

The segment of a loan accruing interest costs to the borrower, commonly presented as a yearly percentage of the ongoing loan total.