If the U.S. dollar weakens against the British pound, which of the following will not be true?

A) British goods will be more expensive in the US.
B) U.S. production will diminish because of reduced demand for U.S. products in Britain.
C) U.S. goods will be less expensive in Britain.
D) All of the above are true.

Question

Madison Miller · Accepted Answer

Final Answer : B, Explanation :  If the U.S. dollar weakens against the British pound, British goods would be more expensive in the US (A) and U.S. goods would be less expensive in Britain (C). However, U.S. production is unlikely to diminish solely because of reduced demand for U.S. products in Britain. Other factors such as competition, technology, and domestic demand also impact production levels. Therefore, choice B is not true.

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