In a Flexible Exchange Rate System, Which of the Following

question 208

Multiple Choice

In a flexible exchange rate system, which of the following would NOT cause the U.S. dollar to depreciate relative to the British pound?

• A) A decrease in demand for British goods in the United States
• B) An increase in demand for British goods in the United States
• C) A decrease in British demand for U.S. exports
• D) A shift to the left in the supply of British goods to the United States

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