If the US Dollar Appreciates Relative to the British Pound, Then

question 12

Multiple Choice

If the U.S. dollar appreciates relative to the British pound, then:

• A) The pound will appreciate relative to the U.S. dollar
• B) The pound will depreciate relative to the U.S. dollar
• C) British goods will be more expensive for Americans
• D) American goods will be less expensive for the British

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Definitions:

Unemployment Benefits

Payments made by the government to unemployed individuals, intended to provide a source of income while they seek new employment.

Stabilization Policy

A government strategy aimed at managing economic cycles by adjusting fiscal policy or monetary policy to stabilize the economy.

Aggregate Demand

Aggregate demand is the total demand for all goods and services in an economy at a given overall price level and in a given time period.

Active Stabilization Policy

Government policies aimed at reducing economic fluctuations through fiscal and monetary actions.