Asked by
Charles Simwanda
on Dec 19, 2024
Verified
If there is a recession in the United Kingdom and a reduction in British imports, and an economic boom in the United States and an increase in U.S. imports, then these events are most likely to cause the British pound to
A) appreciate and the U.S. dollar to appreciate.
B) depreciate and the U.S. dollar to depreciate.
C) appreciate and the U.S. dollar to depreciate.
D) depreciate and the U.S. dollar to appreciate.
British Pound
The currency of the United Kingdom, often symbolized as £ and known officially as the pound sterling.
Economic Boom
A period of significant economic growth, expansion, and prosperity.
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
- Analyze the impact of economic events on national currencies and their exchange rates.
Verified Answer
MA
Learning Objectives
- Analyze the impact of economic events on national currencies and their exchange rates.