Use the Graph Below to Answer Questions 9-11

question 8

Multiple Choice

Use the graph below to answer questions 9-11.
Figure 2.3:
-Refer to Figure 2.3.Suppose that the U.K agreed to peg its currency against the U.S.dollar at $2.00 per pound during the Bretton Woods system.Assume that the U.S.decreases its imports from the U.K.As a result,the Bank of England would have to:

• A) let the British pound appreciates
• B) let the British pound depreciates
• C) sell pounds and buy dollars in foreign exchange market.
• D) sell dollars and buy pounds in foreign exchange market.