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.

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Definitions:

Garage

A building or indoor area designed for the storage and maintenance of vehicles.

Common Carrier

A business or agency that is available to the public for transportation of people, goods, or messages, under certain legal obligations.

Possession

The state of having, owning, or controlling something, typically physical.

Bailment

The act of temporarily placing control over or possession of personal property in another's hands, for a specific purpose.