Recently, people in the United States have started demanding more products from the United Kingdom. What effect will this growing demand for UK products have on the British pound relative to the US dollar?
A) The pound will depreciate
B) The dollar will appreciate
C) The pound will appreciate
D)The dollar will depreciate

Respuesta :

In case of increased demand for United Kingdom products, production in the UK will increase. Every increase in the production directly stimulates the economy, because production is the healthiest basis for the development of the economy. The development of the economy contributes to the strengthening of the national currency, which means that the value of the pound will increase. The pound will appreciate in relation to the US dollar.

The correct answer is: C) The pound will appreciate