If there is an increase in British preferences for American goods, and thereforedemand for American goods increases, this will causea. an increase in the demand for dollars and an increase in the supply of pounds,leading to an appreciation in the value of a dollar.b. an increase in the demand for dollars and an increase in the supply of pounds,leading to depreciation in the value of a dollar.c. a decrease in the demand for dollars and an increase in the supply of pounds,leading to depreciation in the value of a dollar.d. an increase in the demand for dollars and a decrease in the supply of pounds,leading to an appreciation in the value of a dollar.
This question was answered on: May 23, 2022
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