All Else Equal, a Depreciation of the British Pound Relative

question 169

Multiple Choice

All else equal, a depreciation of the British pound relative to currencies such as the euro and the Canadian dollar should ________ British exports and ________ imports to Great Britain.

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

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Definitions:

Industrial Country

Refers to a nation with a developed economy characterized by significant industrial activity, advanced technological infrastructure, and a high standard of living.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced within a country during a specified period.

Health Care

The organized provision of medical services to individuals or a community including preventive, diagnostic, therapeutic, and palliative interventions.

Average American

Refers to a statistical concept often used to describe the typical individual in the United States in terms of income, behavior, or traits based on averages.