What Is the Expected Result If the Number of British

question 69

Multiple Choice

What is the expected result if the number of British pounds that exchange for a Canadian dollar falls on foreign currency markets?

• A)The British will find it more difficult to export goods to Canada.
• B)The British will travel more to Canada.
• C)The British will find Canadian goods to be less expensive in their stores.
• D)The British will have an incentive to import fewer Canadian goods.

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Definitions:

Taxes

Necessary financial levies or assorted kinds of dues imposed on an individual by a governmental structure to facilitate government finance and numerous public investments.

Deadweight Loss

A decrease in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium state.

Tax

Mandatory charges imposed by governments on individuals or entities to fund public services and goods.

Deadweight Loss

An economic inefficiency resulting from a market not reaching equilibrium, where potential gains from trade are not fully realized.